Correlation Between Progressive and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Progressive and Dow Jones 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 and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Progressive and Dow Jones Industrial, you can compare the effects of market volatilities on Progressive and Dow Jones 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 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive and Dow Jones.
Diversification Opportunities for Progressive and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Progressive and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Progressive and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Progressive 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 The Progressive are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Progressive i.e., Progressive and Dow Jones go up and down completely randomly.
Pair Corralation between Progressive and Dow Jones
Assuming the 90 days horizon The Progressive is expected to generate 2.46 times more return on investment than Dow Jones. However, Progressive is 2.46 times more volatile than Dow Jones Industrial. It trades about 0.58 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.33 per unit of risk. If you would invest 23,376 in The Progressive on November 9, 2024 and sell it today you would earn a total of 739.00 from holding The Progressive or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 15.0% |
| Values | Daily Returns |
The Progressive vs. Dow Jones Industrial
Performance |
| Timeline |
Progressive and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
The Progressive
Pair trading matchups for Progressive
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Progressive and Dow Jones
The main advantage of trading using opposite Progressive and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Progressive vs. GREENX METALS LTD | Progressive vs. Aluminum of | Progressive vs. PTT Global Chemical | Progressive vs. ADRIATIC METALS LS 013355 |
| Dow Jones vs. Douglas Emmett | Dow Jones vs. Todos Medical | Dow Jones vs. Eastern Co | Dow Jones vs. Merit Medical Systems |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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