Correlation Between Multi Ways and PROG Holdings

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

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

Diversification Opportunities for Multi Ways and PROG Holdings

-0.24

Correlation Coefficient

Multi Ways  PROG Holdings

Very good diversification

The 3 months correlation between Multi and PROG is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Multi Ways Holdings and PROG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROG Holdings and Multi Ways 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 Multi Ways Holdings 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 Multi Ways i.e., Multi Ways and PROG Holdings go up and down completely randomly.

Pair Corralation between Multi Ways and PROG Holdings

Considering the 90-day investment horizon Multi Ways is expected to generate 14.18 times less return on investment than PROG Holdings. In addition to that, Multi Ways is 2.08 times more volatile than PROG Holdings. It trades about 0.0 of its total potential returns per unit of risk. PROG Holdings is currently generating about 0.13 per unit of volatility. If you would invest  2,485  in PROG Holdings on April 24, 2025 and sell it today you would earn a total of  376.00  from holding PROG Holdings or generate 15.13% return on investment over 90 days.

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

Multi Ways Holdings  vs.  PROG Holdings

Multi Ways Holdings

Risk-Adjusted Performance

Very Weak

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

PROG Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PROG Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PROG Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Multi Ways and PROG Holdings

The main advantage of trading using opposite Multi Ways and PROG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Ways 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 Multi Ways Holdings 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.