Correlation Between PROG Holdings and Triton International

Can any of the company-specific risk be diversified away by investing in both PROG Holdings and Triton International 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 Triton International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PROG Holdings and Triton International Group, you can compare the effects of market volatilities on PROG Holdings and Triton International 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 Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROG Holdings and Triton International.

Diversification Opportunities for PROG Holdings and Triton International

0.09

Correlation Coefficient

PROG Holdings  Triton International

Significant diversification

The 3 months correlation between PROG and Triton is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and Triton International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International 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 Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of PROG Holdings i.e., PROG Holdings and Triton International go up and down completely randomly.

Pair Corralation between PROG Holdings and Triton International

If you would invest  4,664  in PROG Holdings on August 30, 2024 and sell it today you would earn a total of  157.00  from holding PROG Holdings or generate 3.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

PROG Holdings  vs.  Triton International Group

PROG Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PROG Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, PROG Holdings is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Triton International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triton International Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Triton International is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with PROG Holdings and Triton International

The main advantage of trading using opposite PROG Holdings and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROG Holdings position performs unexpectedly, Triton International 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 Triton International will offset losses from the drop in Triton International's long position.

The idea behind PROG Holdings and Triton International Group 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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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.