Correlation Between Cameco Corp and Progressive Corp

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Can any of the company-specific risk be diversified away by investing in both Cameco Corp and Progressive Corp 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 Cameco Corp and Progressive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cameco Corp and Progressive Corp, you can compare the effects of market volatilities on Cameco Corp and Progressive Corp 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 Cameco Corp with a short position of Progressive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cameco Corp and Progressive Corp.

Diversification Opportunities for Cameco Corp and Progressive Corp

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cameco and Progressive is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cameco Corp and Progressive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Corp and Cameco Corp 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 Cameco Corp are associated (or correlated) with Progressive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Corp has no effect on the direction of Cameco Corp i.e., Cameco Corp and Progressive Corp go up and down completely randomly.

Pair Corralation between Cameco Corp and Progressive Corp

Considering the 90-day investment horizon Cameco Corp is expected to generate 3.01 times more return on investment than Progressive Corp. However, Cameco Corp is 3.01 times more volatile than Progressive Corp. It trades about 0.08 of its potential returns per unit of risk. Progressive Corp is currently generating about -0.07 per unit of risk. If you would invest  7,542  in Cameco Corp on August 31, 2025 and sell it today you would earn a total of  1,309  from holding Cameco Corp or generate 17.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Cameco Corp  vs.  Progressive Corp

 Performance 
       Timeline  
Cameco Corp 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cameco Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Cameco Corp revealed solid returns over the last few months and may actually be approaching a breakup point.
Progressive Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Progressive Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Cameco Corp and Progressive Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cameco Corp and Progressive Corp

The main advantage of trading using opposite Cameco Corp and Progressive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cameco Corp position performs unexpectedly, Progressive Corp 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 Corp will offset losses from the drop in Progressive Corp's long position.
The idea behind Cameco Corp and Progressive Corp 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.
Check out your portfolio center.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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