Correlation Between Prog Hldgs and ALBEMARLE CODRN

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

Diversification Opportunities for Prog Hldgs and ALBEMARLE CODRN

-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Prog Hldgs and ALBEMARLE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Prog Hldgs and ALBEMARLE CODRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBEMARLE CODRN 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 ALBEMARLE CODRN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBEMARLE CODRN has no effect on the direction of Prog Hldgs i.e., Prog Hldgs and ALBEMARLE CODRN go up and down completely randomly.

Pair Corralation between Prog Hldgs and ALBEMARLE CODRN

If you would invest  152,768  in ALBEMARLE CODRN on July 8, 2022 and sell it today you would earn a total of  0.00  from holding ALBEMARLE CODRN or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy4.35%
ValuesDaily Returns

Prog Hldgs  vs.  ALBEMARLE CODRN

 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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Prog Hldgs Price Channel

ALBEMARLE CODRN 
ALBEMARLE Performance
0 of 100
Over the last 90 days ALBEMARLE CODRN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ALBEMARLE CODRN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Prog Hldgs and ALBEMARLE CODRN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Prog Hldgs and ALBEMARLE CODRN

The main advantage of trading using opposite Prog Hldgs and ALBEMARLE CODRN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prog Hldgs position performs unexpectedly, ALBEMARLE CODRN 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 ALBEMARLE CODRN will offset losses from the drop in ALBEMARLE CODRN's long position.
Prog Hldgs vs. Amazon Inc
The idea behind Prog Hldgs and ALBEMARLE CODRN 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.
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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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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