Correlation Between Progressive Corp and Fednat Holding
Can any of the company-specific risk be diversified away by investing in both Progressive Corp and Fednat Holding 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 Progressive Corp and Fednat Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progressive Corp and Fednat Holding Co, you can compare the effects of market volatilities on Progressive Corp and Fednat Holding 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 Progressive Corp with a short position of Fednat Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Corp and Fednat Holding.
Diversification Opportunities for Progressive Corp and Fednat Holding
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Progressive and Fednat is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Corp and Fednat Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fednat Holding and Progressive Corp 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 Progressive Corp are associated (or correlated) with Fednat Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fednat Holding has no effect on the direction of Progressive Corp i.e., Progressive Corp and Fednat Holding go up and down completely randomly.
Pair Corralation between Progressive Corp and Fednat Holding
If you would invest 19,203 in Progressive Corp on December 30, 2023 and sell it today you would earn a total of 1,479 from holding Progressive Corp or generate 7.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Progressive Corp vs. Fednat Holding Co
Performance |
Timeline |
Progressive Corp |
Fednat Holding |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Progressive Corp and Fednat Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Progressive Corp and Fednat Holding
The main advantage of trading using opposite Progressive Corp and Fednat Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Corp position performs unexpectedly, Fednat Holding 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 Fednat Holding will offset losses from the drop in Fednat Holding's long position.Progressive Corp vs. Microsoft | Progressive Corp vs. Chevron Corp | Progressive Corp vs. Caterpillar | Progressive Corp vs. Merck Company |
Fednat Holding vs. KNOT Offshore Partners | Fednat Holding vs. Anterix | Fednat Holding vs. Chester Mining | Fednat Holding vs. Weibo Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |