Correlation Between Ford and Progressive Corp
Can any of the company-specific risk be diversified away by investing in both Ford 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 Ford and Progressive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Progressive Corp, you can compare the effects of market volatilities on Ford 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 Ford with a short position of Progressive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Progressive Corp.
Diversification Opportunities for Ford and Progressive Corp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and Progressive is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Progressive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Corp and Ford 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 Ford Motor 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 Ford i.e., Ford and Progressive Corp go up and down completely randomly.
Pair Corralation between Ford and Progressive Corp
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.68 times more return on investment than Progressive Corp. However, Ford is 1.68 times more volatile than Progressive Corp. It trades about 0.1 of its potential returns per unit of risk. Progressive Corp is currently generating about -0.07 per unit of risk. If you would invest 1,159 in Ford Motor on September 2, 2025 and sell it today you would earn a total of 169.00 from holding Ford Motor or generate 14.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Progressive Corp
Performance |
| Timeline |
| Ford Motor |
| Progressive Corp |
Ford and Progressive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Progressive Corp
The main advantage of trading using opposite Ford and Progressive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.| Ford vs. Enduro Metals | Ford vs. Jutal Offshore Oil | Ford vs. Infinite Technology Corp | Ford vs. Lithium Tech Cp |
| Progressive Corp vs. KB Home | Progressive Corp vs. Nobility Homes | Progressive Corp vs. Beazer Homes USA | Progressive Corp vs. Tencent Music Entertainment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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