Correlation Between PICC Property and Progressive Corp
Can any of the company-specific risk be diversified away by investing in both PICC Property and Progressive Corp 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 PICC Property and Progressive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICC Property and and Progressive Corp, you can compare the effects of market volatilities on PICC Property and Progressive Corp 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 PICC Property with a short position of Progressive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and Progressive Corp.
Diversification Opportunities for PICC Property and Progressive Corp
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PICC and Progressive is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and Progressive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Corp and PICC Property 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 PICC Property and are associated (or correlated) with Progressive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Corp has no effect on the direction of PICC Property i.e., PICC Property and Progressive Corp go up and down completely randomly.
Pair Corralation between PICC Property and Progressive Corp
Assuming the 90 days horizon PICC Property and is expected to under-perform the Progressive Corp. In addition to that, PICC Property is 3.0 times more volatile than Progressive Corp. It trades about -0.04 of its total potential returns per unit of risk. Progressive Corp is currently generating about 0.27 per unit of volatility. If you would invest 24,431 in Progressive Corp on August 28, 2024 and sell it today you would earn a total of 2,157 from holding Progressive Corp or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PICC Property and vs. Progressive Corp
Performance |
| Timeline |
| PICC Property |
| Progressive Corp |
PICC Property and Progressive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICC Property and Progressive Corp
The main advantage of trading using opposite PICC Property and Progressive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property position performs unexpectedly, Progressive Corp 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 Progressive Corp will offset losses from the drop in Progressive Corp's long position.| PICC Property vs. Anhui Conch Cement | PICC Property vs. China Overseas Land | PICC Property vs. China Shenhua Energy | PICC Property vs. ENN Energy Holdings |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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