Correlation Between Triton International and PROG Holdings
Can any of the company-specific risk be diversified away by investing in both Triton International and PROG Holdings 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 Triton International and PROG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triton International Limited and PROG Holdings, you can compare the effects of market volatilities on Triton International and PROG Holdings 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 Triton International with a short position of PROG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triton International and PROG Holdings.
Diversification Opportunities for Triton International and PROG Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Triton and PROG is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Triton International Limited and PROG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROG Holdings and Triton International 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 Triton International Limited are associated (or correlated) with PROG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROG Holdings has no effect on the direction of Triton International i.e., Triton International and PROG Holdings go up and down completely randomly.
Pair Corralation between Triton International and PROG Holdings
Assuming the 90 days trading horizon Triton International is expected to generate 69.23 times less return on investment than PROG Holdings. But when comparing it to its historical volatility, Triton International Limited is 11.32 times less risky than PROG Holdings. It trades about 0.03 of its potential returns per unit of risk. PROG Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,313 in PROG Holdings on August 30, 2024 and sell it today you would earn a total of 508.00 from holding PROG Holdings or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Triton International Limited vs. PROG Holdings
Performance |
| Timeline |
| Triton International |
| PROG Holdings |
Triton International and PROG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triton International and PROG Holdings
The main advantage of trading using opposite Triton International and PROG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triton International position performs unexpectedly, PROG Holdings 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 PROG Holdings will offset losses from the drop in PROG Holdings' long position.| Triton International vs. Triton International Limited | Triton International vs. Triton International Limited | Triton International vs. Triton International Limited | Triton International vs. Costamare |
| PROG Holdings vs. Adtalem Global Education | PROG Holdings vs. Enerpac Tool Group | PROG Holdings vs. Piper Sandler Companies |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |