Correlation Between EMC Insurance and Progressive Corp
Can any of the company-specific risk be diversified away by investing in both EMC Insurance and Progressive Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EMC Insurance and Progressive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMC Insurance Group and Progressive Corp, you can compare the effects of market volatilities on EMC Insurance and Progressive Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in EMC Insurance with a short position of Progressive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMC Insurance and Progressive Corp.
Diversification Opportunities for EMC Insurance and Progressive Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EMC and Progressive is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EMC Insurance Group and Progressive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Corp and EMC Insurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on EMC Insurance Group are associated (or correlated) with Progressive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Corp has no effect on the direction of EMC Insurance i.e., EMC Insurance and Progressive Corp go up and down completely randomly.
Pair Corralation between EMC Insurance and Progressive Corp
If you would invest 20,562 in Progressive Corp on January 20, 2024 and sell it today you would earn a total of 413.00 from holding Progressive Corp or generate 2.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
EMC Insurance Group vs. Progressive Corp
Performance |
Timeline |
EMC Insurance Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Progressive Corp |
EMC Insurance and Progressive Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EMC Insurance and Progressive Corp
The main advantage of trading using opposite EMC Insurance and Progressive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMC Insurance position performs unexpectedly, Progressive Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Progressive Corp will offset losses from the drop in Progressive Corp's long position.EMC Insurance vs. Agiliti | EMC Insurance vs. Kaltura | EMC Insurance vs. Definitive Healthcare Corp | EMC Insurance vs. CDW Corp |
Progressive Corp vs. The Travelers Companies | Progressive Corp vs. Chubb | Progressive Corp vs. Cincinnati Financial | Progressive Corp vs. W R Berkley |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
CEOs Directory Screen CEOs from public companies around the world |