Correlation Between Progressive and PICC Property
Can any of the company-specific risk be diversified away by investing in both Progressive and PICC Property 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 PICC Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Progressive and PICC Property and, you can compare the effects of market volatilities on Progressive and PICC Property 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 PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive and PICC Property.
Diversification Opportunities for Progressive and PICC Property
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Progressive and PICC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding The Progressive and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property 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 PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of Progressive i.e., Progressive and PICC Property go up and down completely randomly.
Pair Corralation between Progressive and PICC Property
Assuming the 90 days horizon The Progressive is expected to generate 1.13 times more return on investment than PICC Property. However, Progressive is 1.13 times more volatile than PICC Property and. It trades about 0.34 of its potential returns per unit of risk. PICC Property and is currently generating about 0.03 per unit of risk. If you would invest 22,305 in The Progressive on September 3, 2024 and sell it today you would earn a total of 3,320 from holding The Progressive or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Progressive vs. PICC Property and
Performance |
| Timeline |
| Progressive |
| PICC Property |
Progressive and PICC Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progressive and PICC Property
The main advantage of trading using opposite Progressive and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property's long position.| Progressive vs. Ming Le Sports | Progressive vs. National Bank Holdings | Progressive vs. VIAPLAY GROUP AB | Progressive vs. OAKTRSPECLENDNEW |
| PICC Property vs. LANDSEA HOMES P | PICC Property vs. DFS Furniture PLC | PICC Property vs. Tri Pointe Homes | PICC Property vs. 24SEVENOFFICE GROUP AB |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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