Correlation Between Bill and Procore Technologies
Can any of the company-specific risk be diversified away by investing in both Bill and Procore Technologies 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 Bill and Procore Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bill Com Holdings and Procore Technologies, you can compare the effects of market volatilities on Bill and Procore Technologies 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 Bill with a short position of Procore Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bill and Procore Technologies.
Diversification Opportunities for Bill and Procore Technologies
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bill and Procore is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Procore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procore Technologies and Bill 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 Bill Com Holdings are associated (or correlated) with Procore Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procore Technologies has no effect on the direction of Bill i.e., Bill and Procore Technologies go up and down completely randomly.
Pair Corralation between Bill and Procore Technologies
Given the investment horizon of 90 days Bill Com Holdings is expected to generate 1.27 times more return on investment than Procore Technologies. However, Bill is 1.27 times more volatile than Procore Technologies. It trades about 0.41 of its potential returns per unit of risk. Procore Technologies is currently generating about 0.0 per unit of risk. If you would invest 8,249 in Bill Com Holdings on November 9, 2024 and sell it today you would earn a total of 1,386 from holding Bill Com Holdings or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bill Com Holdings vs. Procore Technologies
Performance |
| Timeline |
| Bill Com Holdings |
| Procore Technologies |
Bill and Procore Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bill and Procore Technologies
The main advantage of trading using opposite Bill and Procore Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bill position performs unexpectedly, Procore Technologies 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 Procore Technologies will offset losses from the drop in Procore Technologies' long position.The idea behind Bill Com Holdings and Procore Technologies 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.| Procore Technologies vs. Paycor HCM | Procore Technologies vs. Clearwater Analytics Holdings | Procore Technologies vs. Alkami Technology | Procore Technologies vs. Jamf Holding |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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