Correlation Between Progress Software and ADEIA P

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

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

Diversification Opportunities for Progress Software and ADEIA P

0.62

Correlation Coefficient

Progress Software  ADEIA P

Poor diversification

The 3 months correlation between Progress and ADEIA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Progress Software and ADEIA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADEIA P and Progress Software 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 Progress Software are associated (or correlated) with ADEIA P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADEIA P has no effect on the direction of Progress Software i.e., Progress Software and ADEIA P go up and down completely randomly.

Pair Corralation between Progress Software and ADEIA P

Given the investment horizon of 90 days Progress Software is expected to generate 0.62 times more return on investment than ADEIA P. However, Progress Software is 1.6 times less risky than ADEIA P. It trades about 0.03 of its potential returns per unit of risk. ADEIA P is currently generating about -0.07 per unit of risk. If you would invest  4,301  in Progress Software on September 11, 2025 and sell it today you would earn a total of  132.00  from holding Progress Software or generate 3.07% return on investment over 90 days.

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

Progress Software  vs.  ADEIA P

Progress Software

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Progress Software are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Progress Software is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

ADEIA P

Risk-Adjusted Performance

Weakest

Over the last 90 days ADEIA P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Progress Software and ADEIA P

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

The idea behind Progress Software and ADEIA P 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.