Correlation Between Progressive Corp and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both Progressive Corp and Ramsay Health 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 Progressive Corp and Ramsay Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progressive Corp and Ramsay Health Care, you can compare the effects of market volatilities on Progressive Corp and Ramsay Health 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 Progressive Corp with a short position of Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Corp and Ramsay Health.
Diversification Opportunities for Progressive Corp and Ramsay Health
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Progressive and Ramsay is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Corp and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care and Progressive Corp 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 Progressive Corp are associated (or correlated) with Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of Progressive Corp i.e., Progressive Corp and Ramsay Health go up and down completely randomly.
Pair Corralation between Progressive Corp and Ramsay Health
Assuming the 90 days horizon Progressive Corp is expected to generate 0.76 times more return on investment than Ramsay Health. However, Progressive Corp is 1.32 times less risky than Ramsay Health. It trades about 0.06 of its potential returns per unit of risk. Ramsay Health Care is currently generating about -0.01 per unit of risk. If you would invest 6,400 in Progressive Corp on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Progressive Corp or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Progressive Corp vs. Ramsay Health Care
Performance |
| Timeline |
| Progressive Corp |
| Ramsay Health Care |
Progressive Corp and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progressive Corp and Ramsay Health
The main advantage of trading using opposite Progressive Corp and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Corp position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| Progressive Corp vs. Ramsay Health Care | Progressive Corp vs. EHEALTH | Progressive Corp vs. SEKISUI CHEMICAL | Progressive Corp vs. DiamondRock Hospitality |
| Ramsay Health vs. Universal Health Services | Ramsay Health vs. Superior Plus Corp | Ramsay Health vs. SIVERS SEMICONDUCTORS AB | Ramsay Health vs. NorAm Drilling AS |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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