Progressive Corp Stock Volatility

PGR Stock  USD 206.82  0.67  0.33%   
Progressive Corp appears to be very steady, given 3 months investment horizon. Progressive Corp maintains Sharpe Ratio (i.e., Efficiency) of 0.41, which implies the firm had a 0.41% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Progressive Corp, which you can use to evaluate the volatility of the company. Please evaluate Progressive Corp's Standard Deviation of 1.0, downside deviation of 0.6086, and Risk Adjusted Performance of 0.2389 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Progressive Corp's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Progressive Corp Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Progressive daily returns, and it is calculated using variance and standard deviation. We also use Progressive's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Progressive Corp volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Progressive Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Progressive Corp's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Progressive Corp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Progressive Corp at lower prices. For example, an investor can purchase Progressive stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Progressive Corp's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

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Progressive Corp Market Sensitivity And Downside Risk

Progressive Corp's beta coefficient measures the volatility of Progressive stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Progressive stock's returns against your selected market. In other words, Progressive Corp's beta of 0.0669 provides an investor with an approximation of how much risk Progressive Corp stock can potentially add to one of your existing portfolios. Progressive Corp exhibits relatively low volatility with skewness of 1.69 and kurtosis of 5.28. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Progressive Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Progressive Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Progressive Corp Demand Trend
Check current 90 days Progressive Corp correlation with market (NYSE Composite)

Progressive Beta

    
  0.0669  
Progressive standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.03  
It is essential to understand the difference between upside risk (as represented by Progressive Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Progressive Corp's daily returns or price. Since the actual investment returns on holding a position in progressive stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Progressive Corp.

Using Progressive Put Option to Manage Risk

Put options written on Progressive Corp grant holders of the option the right to sell a specified amount of Progressive Corp at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Progressive Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Progressive Corp's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Progressive Corp will be realized, the loss incurred will be offset by the profits made with the option trade.

Progressive Corp's PUT expiring on 2024-04-19

   Profit   
       Progressive Corp Price At Expiration  

Current Progressive Corp Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $220.0-0.83470.0222024-04-1913.7 - 14.314.66View
Put
2024-04-19 PUT at $210.0-0.58030.0322872024-04-196.4 - 6.66.48View
Put
2024-04-19 PUT at $200.0-0.27730.025710302024-04-192.25 - 2.42.31View
Put
2024-04-19 PUT at $195.0-0.17470.01858392024-04-191.3 - 1.41.25View
Put
2024-04-19 PUT at $190.0-0.10880.01247912024-04-190.75 - 0.850.81View
Put
2024-04-19 PUT at $185.0-0.06720.00814092024-04-190.4 - 0.550.49View
Put
2024-04-19 PUT at $180.0-0.04620.00552152024-04-190.2 - 0.40.35View
Put
2024-04-19 PUT at $175.0-0.04620.00451052024-04-190.1 - 0.750.25View
Put
2024-04-19 PUT at $170.0-0.03940.0035442024-04-190.05 - 0.750.14View
Put
2024-04-19 PUT at $165.0-0.02240.0022152024-04-190.0 - 0.250.21View
Put
2024-04-19 PUT at $150.0-0.00566.0E-42382024-04-190.0 - 0.050.05View
View All Progressive Corp Options

Progressive Corp Stock Volatility Analysis

Volatility refers to the frequency at which Progressive Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Progressive Corp's price changes. Investors will then calculate the volatility of Progressive Corp's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Progressive Corp's volatility:

Historical Volatility

This type of stock volatility measures Progressive Corp's fluctuations based on previous trends. It's commonly used to predict Progressive Corp's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Progressive Corp's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Progressive Corp's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Progressive Corp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Progressive Corp Projected Return Density Against Market

Considering the 90-day investment horizon Progressive Corp has a beta of 0.0669 indicating as returns on the market go up, Progressive Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Progressive Corp will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Progressive Corp or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Progressive Corp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Progressive stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Progressive Corp has an alpha of 0.4053, implying that it can generate a 0.41 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Progressive Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how progressive stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Progressive Corp Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Progressive Corp Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Progressive Corp is 246.58. The daily returns are distributed with a variance of 1.06 and standard deviation of 1.03. The mean deviation of Progressive Corp is currently at 0.72. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.41
β
Beta against NYSE Composite0.07
σ
Overall volatility
1.03
Ir
Information ratio 0.29

Progressive Corp Stock Return Volatility

Progressive Corp historical daily return volatility represents how much of Progressive Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 1.0317% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Progressive Corp Volatility

Volatility is a rate at which the price of Progressive Corp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Progressive Corp may increase or decrease. In other words, similar to Progressive's beta indicator, it measures the risk of Progressive Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Progressive Corp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, general liability, and other specialty property-casualty insurance products and related services in the United States. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield, Ohio. Progressive Corp operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 49077 people.
Progressive Corp's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Progressive Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Progressive Corp's price varies over time.

3 ways to utilize Progressive Corp's volatility to invest better

Higher Progressive Corp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Progressive Corp stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Progressive Corp stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Progressive Corp investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Progressive Corp's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Progressive Corp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Progressive Corp Investment Opportunity

Progressive Corp has a volatility of 1.03 and is 1.81 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Progressive Corp is lower than 9 percent of all global equities and portfolios over the last 90 days. You can use Progressive Corp to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Progressive Corp to be traded at $217.16 in 90 days.

Significant diversification

The correlation between Progressive Corp and NYA is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Corp and NYA in the same portfolio, assuming nothing else is changed.

Progressive Corp Additional Risk Indicators

The analysis of Progressive Corp's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Progressive Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Progressive Corp stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Progressive Corp Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Progressive Corp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Progressive Corp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Progressive Corp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Progressive Corp.
When determining whether Progressive Corp is a strong investment it is important to analyze Progressive Corp's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Progressive Corp's future performance. For an informed investment choice regarding Progressive Stock, refer to the following important reports:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Progressive Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price.
To learn how to invest in Progressive Stock, please use our How to Invest in Progressive Corp guide.
Note that the Progressive Corp information on this page should be used as a complementary analysis to other Progressive Corp's statistical models used 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 Transaction History module to view history of all your transactions and understand their impact on performance.

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When running Progressive Corp's price analysis, check to measure Progressive Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Progressive Corp is operating at the current time. Most of Progressive Corp's value examination focuses on studying past and present price action to predict the probability of Progressive Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Progressive Corp's price. Additionally, you may evaluate how the addition of Progressive Corp to your portfolios can decrease your overall portfolio volatility.
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Is Progressive Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Progressive Corp. If investors know Progressive will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Progressive Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.424
Dividend Share
1.15
Earnings Share
6.6
Revenue Per Share
106.142
Quarterly Revenue Growth
0.254
The market value of Progressive Corp is measured differently than its book value, which is the value of Progressive that is recorded on the company's balance sheet. Investors also form their own opinion of Progressive Corp's value that differs from its market value or its book value, called intrinsic value, which is Progressive Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Progressive Corp's market value can be influenced by many factors that don't directly affect Progressive Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Progressive Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Progressive Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Progressive Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.