Correlation Between Prog Hldgs and LINGYI ITECH

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Prog Hldgs and LINGYI ITECH 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 LINGYI ITECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prog Hldgs and LINGYI ITECH GUAN, you can compare the effects of market volatilities on Prog Hldgs and LINGYI ITECH 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 LINGYI ITECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prog Hldgs and LINGYI ITECH.

Diversification Opportunities for Prog Hldgs and LINGYI ITECH

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between Prog Hldgs and LINGYI is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Prog Hldgs and LINGYI ITECH GUAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINGYI ITECH GUAN 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 LINGYI ITECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINGYI ITECH GUAN has no effect on the direction of Prog Hldgs i.e., Prog Hldgs and LINGYI ITECH go up and down completely randomly.

Pair Corralation between Prog Hldgs and LINGYI ITECH

Considering the 90-day investment horizon Prog Hldgs is expected to generate 1.67 times more return on investment than LINGYI ITECH. However, Prog Hldgs is 1.67 times more volatile than LINGYI ITECH GUAN. It trades about -0.29 of its potential returns per unit of risk. LINGYI ITECH GUAN is currently generating about -0.51 per unit of risk. If you would invest  1,854  in Prog Hldgs on July 2, 2022 and sell it today you would lose (356.00)  from holding Prog Hldgs or give up 19.2% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy90.91%
ValuesDaily Returns

Prog Hldgs  vs.  LINGYI ITECH GUAN

 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 latest conflicting performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Prog Hldgs Price Channel

LINGYI ITECH GUAN 
LINGYI Performance
0 of 100
Over the last 90 days LINGYI ITECH GUAN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

LINGYI Price Channel

Prog Hldgs and LINGYI ITECH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Prog Hldgs and LINGYI ITECH

The main advantage of trading using opposite Prog Hldgs and LINGYI ITECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prog Hldgs position performs unexpectedly, LINGYI ITECH 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 LINGYI ITECH will offset losses from the drop in LINGYI ITECH's long position.
Prog Hldgs vs. Amazon Inc
The idea behind Prog Hldgs and LINGYI ITECH GUAN 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.
LINGYI ITECH vs. YUNNAN BOTANEE BIO
LINGYI ITECH vs. ZHONGJING FOOD CO
LINGYI ITECH vs. EYEBRIGHT MEDICAL TECHNOLOGY
LINGYI ITECH vs. ASYMCHEM LABORATOR
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go