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 Limited, 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

-0.51

Correlation Coefficient

PROG Holdings  Triton International

Excellent diversification

The 3 months correlation between PROG and Triton is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and Triton International Limited 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

Considering the 90-day investment horizon PROG Holdings is expected to under-perform the Triton International. In addition to that, PROG Holdings is 4.26 times more volatile than Triton International Limited. It trades about -0.33 of its total potential returns per unit of risk. Triton International Limited is currently generating about -0.09 per unit of volatility. If you would invest  2,525  in Triton International Limited on October 14, 2024 and sell it today you would lose (15.00) from holding Triton International Limited or give up 0.59% of portfolio value over 90 days.

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

PROG Holdings  vs.  Triton International Limited

PROG Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PROG Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Triton International

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Triton International Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Triton International is not utilizing all of its potentials. The current stock price disturbance, 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 Limited 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.