Correlation Between PROG Holdings and Aarons
Can any of the company-specific risk be diversified away by investing in both PROG Holdings and Aarons 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 PROG Holdings and Aarons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PROG Holdings and The Aarons, you can compare the effects of market volatilities on PROG Holdings and Aarons 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 PROG Holdings with a short position of Aarons. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROG Holdings and Aarons.
Diversification Opportunities for PROG Holdings and Aarons
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PROG and Aarons is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and The Aarons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aarons and PROG Holdings 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 PROG Holdings are associated (or correlated) with Aarons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aarons has no effect on the direction of PROG Holdings i.e., PROG Holdings and Aarons go up and down completely randomly.
Pair Corralation between PROG Holdings and Aarons
Considering the 90-day investment horizon PROG Holdings is expected to generate 0.76 times more return on investment than Aarons. However, PROG Holdings is 1.32 times less risky than Aarons. It trades about 0.08 of its potential returns per unit of risk. The Aarons is currently generating about 0.01 per unit of risk. If you would invest 1,880 in PROG Holdings on August 24, 2024 and sell it today you would earn a total of 2,862 from holding PROG Holdings or generate 152.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 92.94% |
| Values | Daily Returns |
PROG Holdings vs. The Aarons
Performance |
| Timeline |
| PROG Holdings |
| Aarons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
PROG Holdings and Aarons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROG Holdings and Aarons
The main advantage of trading using opposite PROG Holdings and Aarons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROG Holdings position performs unexpectedly, Aarons 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 Aarons will offset losses from the drop in Aarons' long position.| PROG Holdings vs. Adtalem Global Education | PROG Holdings vs. Enerpac Tool Group | PROG Holdings vs. Piper Sandler Companies |
| Aarons vs. Custom Truck One | Aarons vs. PROG Holdings | Aarons vs. McGrath RentCorp | Aarons vs. HE Equipment Services |
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.
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