Correlation Between Fortress Transp and PROG Holdings
Can any of the company-specific risk be diversified away by investing in both Fortress Transp and PROG Holdings 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 Fortress Transp and PROG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Transp Infra and PROG Holdings, you can compare the effects of market volatilities on Fortress Transp and PROG Holdings 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 Fortress Transp with a short position of PROG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Transp and PROG Holdings.
Diversification Opportunities for Fortress Transp and PROG Holdings
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fortress and PROG is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Transp Infra and PROG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROG Holdings and Fortress Transp 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 Fortress Transp Infra are associated (or correlated) with PROG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROG Holdings has no effect on the direction of Fortress Transp i.e., Fortress Transp and PROG Holdings go up and down completely randomly.
Pair Corralation between Fortress Transp and PROG Holdings
Given the investment horizon of 90 days Fortress Transp Infra is expected to generate 2.01 times more return on investment than PROG Holdings. However, Fortress Transp is 2.01 times more volatile than PROG Holdings. It trades about 0.34 of its potential returns per unit of risk. PROG Holdings is currently generating about -0.4 per unit of risk. If you would invest 13,508 in Fortress Transp Infra on October 13, 2024 and sell it today you would earn a total of 3,894 from holding Fortress Transp Infra or generate 28.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Transp Infra vs. PROG Holdings
Performance |
| Timeline |
| Fortress Transp Infra |
| PROG Holdings |
Fortress Transp and PROG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Transp and PROG Holdings
The main advantage of trading using opposite Fortress Transp and PROG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Transp position performs unexpectedly, PROG Holdings 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 PROG Holdings will offset losses from the drop in PROG Holdings' long position.| Fortress Transp vs. McGrath RentCorp | Fortress Transp vs. Custom Truck One | Fortress Transp vs. Herc Holdings | Fortress Transp vs. Alta Equipment Group |
| PROG Holdings vs. Adtalem Global Education | PROG Holdings vs. Enerpac Tool Group | PROG Holdings vs. Piper Sandler Companies |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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