Correlation Between Intrusion and Progress Software

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

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

Diversification Opportunities for Intrusion and Progress Software

0.48

Correlation Coefficient

Intrusion  Progress Software

Very weak diversification

The 3 months correlation between Intrusion and Progress is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Intrusion and Progress Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progress Software and Intrusion 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 Intrusion are associated (or correlated) with Progress Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progress Software has no effect on the direction of Intrusion i.e., Intrusion and Progress Software go up and down completely randomly.

Pair Corralation between Intrusion and Progress Software

Given the investment horizon of 90 days Intrusion is expected to under-perform the Progress Software. In addition to that, Intrusion is 6.88 times more volatile than Progress Software. It trades about -0.11 of its total potential returns per unit of risk. Progress Software is currently generating about -0.18 per unit of volatility. If you would invest  6,505  in Progress Software on December 30, 2024 and sell it today you would lose (1,366) from holding Progress Software or give up 21.0% of portfolio value over 90 days.

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

Intrusion  vs.  Progress Software

Intrusion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intrusion 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 April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Progress Software

Risk-Adjusted Performance

Very Weak

Over the last 90 days Progress Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Intrusion and Progress Software

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

The idea behind Intrusion and Progress Software 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.