Correlation Between Heidrick Struggles and PROG Holdings

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

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

Diversification Opportunities for Heidrick Struggles and PROG Holdings

-0.34

Correlation Coefficient

Heidrick Struggles  PROG Holdings

Very good diversification

The 3 months correlation between Heidrick and PROG is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Heidrick Struggles Internation and PROG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROG Holdings and Heidrick Struggles 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 Heidrick Struggles International are associated (or correlated) with PROG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROG Holdings has no effect on the direction of Heidrick Struggles i.e., Heidrick Struggles and PROG Holdings go up and down completely randomly.

Pair Corralation between Heidrick Struggles and PROG Holdings

Given the investment horizon of 90 days Heidrick Struggles International is expected to generate 0.82 times more return on investment than PROG Holdings. However, Heidrick Struggles International is 1.22 times less risky than PROG Holdings. It trades about 0.08 of its potential returns per unit of risk. PROG Holdings is currently generating about 0.02 per unit of risk. If you would invest  2,467  in Heidrick Struggles International on August 2, 2025 and sell it today you would earn a total of  3,366  from holding Heidrick Struggles International or generate 136.44% return on investment over 90 days.

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

Heidrick Struggles Internation  vs.  PROG Holdings

Heidrick Struggles

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Heidrick Struggles International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Heidrick Struggles demonstrated solid returns over the last few months and may actually be approaching a breakup point.

PROG Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days PROG Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PROG Holdings is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Heidrick Struggles and PROG Holdings

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

The idea behind Heidrick Struggles International and PROG Holdings 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.