Correlation Between PROG Holdings and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both PROG Holdings and Strategic Asset 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 PROG Holdings and Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PROG Holdings and Strategic Asset Leasing, you can compare the effects of market volatilities on PROG Holdings and Strategic Asset 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 PROG Holdings with a short position of Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROG Holdings and Strategic Asset.
Diversification Opportunities for PROG Holdings and Strategic Asset
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PROG and Strategic is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and Strategic Asset Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Leasing and PROG Holdings 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 PROG Holdings are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Leasing has no effect on the direction of PROG Holdings i.e., PROG Holdings and Strategic Asset go up and down completely randomly.
Pair Corralation between PROG Holdings and Strategic Asset
If you would invest 3,021 in PROG Holdings on January 24, 2024 and sell it today you would earn a total of 205.00 from holding PROG Holdings or generate 6.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
PROG Holdings vs. Strategic Asset Leasing
Performance |
Timeline |
PROG Holdings |
Strategic Asset Leasing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PROG Holdings and Strategic Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PROG Holdings and Strategic Asset
The main advantage of trading using opposite PROG Holdings and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROG Holdings position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.PROG Holdings vs. FlexShopper | PROG Holdings vs. Hertz Global Holdings | PROG Holdings vs. HyreCar | PROG Holdings vs. Avis Budget Group |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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