Correlation Between Prog Hldgs and One Choice

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Can any of the company-specific risk be diversified away by investing in both Prog Hldgs and One Choice 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 Hldgs and One Choice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prog Hldgs and One Choice Blend, you can compare the effects of market volatilities on Prog Hldgs and One Choice 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 Hldgs with a short position of One Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prog Hldgs and One Choice.

Diversification Opportunities for Prog Hldgs and One Choice

0.74
  Correlation Coefficient

Poor diversification

The 3 months correlation between Prog Hldgs and AAAOX is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Prog Hldgs and One Choice Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Choice Blend and Prog Hldgs 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 Hldgs are associated (or correlated) with One Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Choice Blend has no effect on the direction of Prog Hldgs i.e., Prog Hldgs and One Choice go up and down completely randomly.

Pair Corralation between Prog Hldgs and One Choice

Considering the 90-day investment horizon Prog Hldgs is expected to under-perform the One Choice. In addition to that, Prog Hldgs is 9.05 times more volatile than One Choice Blend. It trades about -0.02 of its total potential returns per unit of risk. One Choice Blend is currently generating about -0.06 per unit of volatility. If you would invest  1,000.00  in One Choice Blend on June 26, 2022 and sell it today you would lose (118.00)  from holding One Choice Blend or give up 11.8% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy78.31%
ValuesDaily Returns

Prog Hldgs  vs.  One Choice Blend

 Performance (%) 
       Timeline  
Prog Hldgs 
Prog Hldgs Performance
0 of 100
Over the last 90 days Prog Hldgs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Prog Hldgs is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Prog Hldgs Price Channel

One Choice Blend 
AAAOX Performance
0 of 100
Over the last 90 days One Choice Blend has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, One Choice is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

AAAOX Price Channel

Prog Hldgs and One Choice Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Prog Hldgs and One Choice

The main advantage of trading using opposite Prog Hldgs and One Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prog Hldgs position performs unexpectedly, One Choice 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 One Choice will offset losses from the drop in One Choice's long position.
Prog Hldgs vs. Industrias Bachoco SA
The idea behind Prog Hldgs and One Choice Blend pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
One Choice vs. American Express
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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