Correlation Between Progressive Corp and Markel
Can any of the company-specific risk be diversified away by investing in both Progressive Corp and Markel 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 Markel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progressive Corp and Markel, you can compare the effects of market volatilities on Progressive Corp and Markel 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 Markel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Corp and Markel.
Diversification Opportunities for Progressive Corp and Markel
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Progressive and Markel is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Corp and Markel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel 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 Markel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel has no effect on the direction of Progressive Corp i.e., Progressive Corp and Markel go up and down completely randomly.
Pair Corralation between Progressive Corp and Markel
Considering the 90-day investment horizon Progressive Corp is expected to generate 1.39 times less return on investment than Markel. But when comparing it to its historical volatility, Progressive Corp is 1.05 times less risky than Markel. It trades about 0.28 of its potential returns per unit of risk. Markel is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 156,400 in Markel on August 27, 2024 and sell it today you would earn a total of 19,762 from holding Markel or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progressive Corp vs. Markel
Performance |
| Timeline |
| Progressive Corp |
| Markel |
Progressive Corp and Markel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progressive Corp and Markel
The main advantage of trading using opposite Progressive Corp and Markel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Corp position performs unexpectedly, Markel 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 Markel will offset losses from the drop in Markel's long position.| Progressive Corp vs. The Travelers Companies | Progressive Corp vs. Chubb | Progressive Corp vs. Cincinnati Financial | Progressive Corp vs. W R Berkley |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |