Correlation Between PROG Holdings and IAC

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

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

Diversification Opportunities for PROG Holdings and IAC

0.31

Correlation Coefficient

PROG Holdings  IAC

Weak diversification

The 3 months correlation between PROG and IAC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and IAC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAC Inc 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 IAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAC Inc has no effect on the direction of PROG Holdings i.e., PROG Holdings and IAC go up and down completely randomly.

Pair Corralation between PROG Holdings and IAC

Considering the 90-day investment horizon PROG Holdings is expected to generate 1.2 times more return on investment than IAC. However, PROG Holdings is 1.2 times more volatile than IAC Inc. It trades about 0.06 of its potential returns per unit of risk. IAC Inc is currently generating about -0.08 per unit of risk. If you would invest  2,870  in PROG Holdings on May 11, 2025 and sell it today you would earn a total of  265.00  from holding PROG Holdings or generate 9.23% return on investment over 90 days.

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

PROG Holdings  vs.  IAC Inc

PROG Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in PROG Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PROG Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

IAC Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days IAC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with PROG Holdings and IAC

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

The idea behind PROG Holdings and IAC Inc 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.