Correlation Between Progyny and ASGN
Can any of the company-specific risk be diversified away by investing in both Progyny and ASGN 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 Progyny and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progyny and ASGN Inc, you can compare the effects of market volatilities on Progyny and ASGN 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 Progyny with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progyny and ASGN.
Diversification Opportunities for Progyny and ASGN
Average diversification
The 3 months correlation between Progyny and ASGN is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Progyny and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Progyny 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 Progyny are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Progyny i.e., Progyny and ASGN go up and down completely randomly.
Pair Corralation between Progyny and ASGN
Given the investment horizon of 90 days Progyny is expected to under-perform the ASGN. In addition to that, Progyny is 1.95 times more volatile than ASGN Inc. It trades about -0.06 of its total potential returns per unit of risk. ASGN Inc is currently generating about 0.0 per unit of volatility. If you would invest 9,069 in ASGN Inc on September 14, 2024 and sell it today you would lose (268.00) from holding ASGN Inc or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progyny vs. ASGN Inc
Performance |
| Timeline |
| Progyny |
| ASGN Inc |
Progyny and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progyny and ASGN
The main advantage of trading using opposite Progyny and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progyny position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| Progyny vs. ASGN Inc | Progyny vs. Kforce Inc | Progyny vs. Kelly Services A | Progyny vs. AMN Healthcare Services |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |