Correlation Between The9 and PROG Holdings
Can any of the company-specific risk be diversified away by investing in both The9 and PROG Holdings 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 The9 and PROG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The9 Ltd ADR and PROG Holdings, you can compare the effects of market volatilities on The9 and PROG Holdings 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 The9 with a short position of PROG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of The9 and PROG Holdings.
Diversification Opportunities for The9 and PROG Holdings
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between The9 and PROG is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The9 Ltd ADR and PROG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROG Holdings and The9 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 The9 Ltd ADR are associated (or correlated) with PROG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROG Holdings has no effect on the direction of The9 i.e., The9 and PROG Holdings go up and down completely randomly.
Pair Corralation between The9 and PROG Holdings
Given the investment horizon of 90 days The9 is expected to generate 1.7 times less return on investment than PROG Holdings. In addition to that, The9 is 2.68 times more volatile than PROG Holdings. It trades about 0.08 of its total potential returns per unit of risk. PROG Holdings is currently generating about 0.36 per unit of volatility. If you would invest 3,038 in PROG Holdings on June 2, 2025 and sell it today you would earn a total of 486.00 from holding PROG Holdings or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The9 Ltd ADR vs. PROG Holdings
Performance |
| Timeline |
| The9 Ltd ADR |
| PROG Holdings |
The9 and PROG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The9 and PROG Holdings
The main advantage of trading using opposite The9 and PROG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The9 position performs unexpectedly, PROG Holdings 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 PROG Holdings will offset losses from the drop in PROG Holdings' long position.| The9 vs. Blue Hat Interactive | The9 vs. Snail, Class A | The9 vs. Sonida Senior Living | The9 vs. Nine Energy Service |
| PROG Holdings vs. Alta Equipment Group | PROG Holdings vs. GATX Corporation | PROG Holdings vs. McGrath RentCorp | PROG Holdings vs. Adtalem Global Education |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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