Correlation Between CEOTRONICS and Progressive

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

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

Diversification Opportunities for CEOTRONICS and Progressive

0.27

Correlation Coefficient

CEOTRONICS  Progressive

Modest diversification

The 3 months correlation between CEOTRONICS and Progressive is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CEOTRONICS and The Progressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive and CEOTRONICS 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 CEOTRONICS are associated (or correlated) with Progressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive has no effect on the direction of CEOTRONICS i.e., CEOTRONICS and Progressive go up and down completely randomly.

Pair Corralation between CEOTRONICS and Progressive

Assuming the 90 days trading horizon CEOTRONICS is expected to generate 3.1 times more return on investment than Progressive. However, CEOTRONICS is 3.1 times more volatile than The Progressive. It trades about 0.0 of its potential returns per unit of risk. The Progressive is currently generating about -0.12 per unit of risk. If you would invest  1,400  in CEOTRONICS on April 24, 2025 and sell it today you would lose (75.00) from holding CEOTRONICS or give up 5.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

CEOTRONICS  vs.  The Progressive

CEOTRONICS

Risk-Adjusted Performance

Very Weak

Over the last 90 days CEOTRONICS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CEOTRONICS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Progressive

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Progressive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with CEOTRONICS and Progressive

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

The idea behind CEOTRONICS and The Progressive 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.