Correlation Between PROG Holdings and Element Fleet

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

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

Diversification Opportunities for PROG Holdings and Element Fleet

0.69

Correlation Coefficient

PROG Holdings  Element Fleet

Poor diversification

The 3 months correlation between PROG and Element is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and Element Fleet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element Fleet Management 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 Element Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element Fleet Management has no effect on the direction of PROG Holdings i.e., PROG Holdings and Element Fleet go up and down completely randomly.

Pair Corralation between PROG Holdings and Element Fleet

Considering the 90-day investment horizon PROG Holdings is expected to generate 3.35 times more return on investment than Element Fleet. However, PROG Holdings is 3.35 times more volatile than Element Fleet Management. It trades about 0.09 of its potential returns per unit of risk. Element Fleet Management is currently generating about 0.28 per unit of risk. If you would invest  2,992  in PROG Holdings on May 16, 2025 and sell it today you would earn a total of  443.00  from holding PROG Holdings or generate 14.81% return on investment over 90 days.

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

PROG Holdings  vs.  Element Fleet Management

PROG Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PROG Holdings are ranked lower than 7 (%) 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.

Element Fleet Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Element Fleet Management are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Element Fleet displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PROG Holdings and Element Fleet

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

The idea behind PROG Holdings and Element Fleet Management 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.