Correlation Between Hagerty and Progressive Corp
Can any of the company-specific risk be diversified away by investing in both Hagerty 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 Hagerty and Progressive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hagerty and Progressive Corp, you can compare the effects of market volatilities on Hagerty 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 Hagerty with a short position of Progressive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hagerty and Progressive Corp.
Diversification Opportunities for Hagerty and Progressive Corp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hagerty and Progressive is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hagerty and Progressive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Corp and Hagerty 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 Hagerty 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 Hagerty i.e., Hagerty and Progressive Corp go up and down completely randomly.
Pair Corralation between Hagerty and Progressive Corp
Given the investment horizon of 90 days Hagerty is expected to generate 1.6 times less return on investment than Progressive Corp. In addition to that, Hagerty is 1.24 times more volatile than Progressive Corp. It trades about 0.04 of its total potential returns per unit of risk. Progressive Corp is currently generating about 0.09 per unit of volatility. If you would invest 12,824 in Progressive Corp on September 13, 2024 and sell it today you would earn a total of 11,549 from holding Progressive Corp or generate 90.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hagerty vs. Progressive Corp
Performance |
| Timeline |
| Hagerty |
| Progressive Corp |
Hagerty and Progressive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hagerty and Progressive Corp
The main advantage of trading using opposite Hagerty and Progressive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hagerty 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.| Hagerty vs. Selective Insurance Group | Hagerty vs. Kemper | Hagerty vs. Donegal Group B | Hagerty vs. Argo Group International |
| Progressive Corp vs. Chubb | Progressive Corp vs. W R Berkley | Progressive Corp vs. The Allstate | Progressive Corp vs. Markel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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