Correlation Between Progressive Care and Trxade

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

By analyzing existing cross correlation between Progressive Care and Trxade Group, you can compare the effects of market volatilities on Progressive Care and Trxade 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 Progressive Care with a short position of Trxade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Care and Trxade.

Diversification Opportunities for Progressive Care and Trxade

-0.21

Correlation Coefficient

Progressive Care  Trxade

Very good diversification

The 3 months correlation between Progressive and Trxade is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Care and Trxade Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trxade Group and Progressive Care 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 Progressive Care are associated (or correlated) with Trxade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trxade Group has no effect on the direction of Progressive Care i.e., Progressive Care and Trxade go up and down completely randomly.

Pair Corralation between Progressive Care and Trxade

Given the investment horizon of 90 days Progressive Care is expected to generate 10.0 times less return on investment than Trxade. But when comparing it to its historical volatility, Progressive Care is 1.49 times less risky than Trxade. It trades about 0.01 of its potential returns per unit of risk. Trxade Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  328.00  in Trxade Group on August 31, 2024 and sell it today you would earn a total of  418.00  from holding Trxade Group or generate 127.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.78%
Values	Daily Returns

Progressive Care  vs.  Trxade Group

Progressive Care

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Progressive Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak primary indicators, Progressive Care exhibited solid returns over the last few months and may actually be approaching a breakup point.

Trxade Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trxade Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Trxade is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Progressive Care and Trxade

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

The idea behind Progressive Care and Trxade 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.