Correlation Between PROG Holdings and NextNav Warrant

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

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

Diversification Opportunities for PROG Holdings and NextNav Warrant

0.8

Correlation Coefficient

PROG Holdings  NextNav Warrant

Very poor diversification

The 3 months correlation between PROG and NextNav is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and NextNav Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextNav Warrant 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 NextNav Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextNav Warrant has no effect on the direction of PROG Holdings i.e., PROG Holdings and NextNav Warrant go up and down completely randomly.

Pair Corralation between PROG Holdings and NextNav Warrant

Considering the 90-day investment horizon PROG Holdings is expected to under-perform the NextNav Warrant. But the stock apears to be less risky and, when comparing its historical volatility, PROG Holdings is 2.6 times less risky than NextNav Warrant. The stock trades about -0.13 of its potential returns per unit of risk. The NextNav Warrant is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  637.00  in NextNav Warrant on September 6, 2025 and sell it today you would lose (12.00) from holding NextNav Warrant or give up 1.88% of portfolio value over 90 days.

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

PROG Holdings  vs.  NextNav Warrant

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 conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

NextNav Warrant

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NextNav Warrant are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, NextNav Warrant may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with PROG Holdings and NextNav Warrant

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

The idea behind PROG Holdings and NextNav Warrant 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .