Correlation Between PROG Holdings and HyreCar

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

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

Diversification Opportunities for PROG Holdings and HyreCar

0.15

Correlation Coefficient

PROG Holdings  HyreCar

Average diversification

The 3 months correlation between PROG and HyreCar is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and HyreCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyreCar 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 HyreCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyreCar has no effect on the direction of PROG Holdings i.e., PROG Holdings and HyreCar go up and down completely randomly.

Pair Corralation between PROG Holdings and HyreCar

Considering the 90-day investment horizon PROG Holdings is expected to generate 6.17 times less return on investment than HyreCar. But when comparing it to its historical volatility, PROG Holdings is 17.23 times less risky than HyreCar. It trades about 0.09 of its potential returns per unit of risk. HyreCar is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  40.00  in HyreCar on September 12, 2024 and sell it today you would lose (40.00) from holding HyreCar or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

PROG Holdings  vs.  HyreCar

PROG Holdings

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PROG Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, PROG Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

HyreCar

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HyreCar has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with PROG Holdings and HyreCar

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

The idea behind PROG Holdings and HyreCar 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.