Correlation Between ASGN and Progyny

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

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

Diversification Opportunities for ASGN and Progyny

0.16

Correlation Coefficient

ASGN  Progyny

Average diversification

The 3 months correlation between ASGN and Progyny is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Progyny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progyny and ASGN 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 ASGN Inc are associated (or correlated) with Progyny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progyny has no effect on the direction of ASGN i.e., ASGN and Progyny go up and down completely randomly.

Pair Corralation between ASGN and Progyny

Given the investment horizon of 90 days ASGN Inc is expected to generate 0.38 times more return on investment than Progyny. However, ASGN Inc is 2.64 times less risky than Progyny. It trades about -0.04 of its potential returns per unit of risk. Progyny is currently generating about -0.1 per unit of risk. If you would invest  9,391  in ASGN Inc on September 14, 2024 and sell it today you would lose (554.00) from holding ASGN Inc or give up 5.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASGN Inc  vs.  Progyny

ASGN Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Progyny

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Progyny has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ASGN and Progyny

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

The idea behind ASGN Inc and Progyny 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.

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 the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.