Correlation Between Procore Technologies and Pegasystems
Can any of the company-specific risk be diversified away by investing in both Procore Technologies and Pegasystems 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 Procore Technologies and Pegasystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procore Technologies and Pegasystems, you can compare the effects of market volatilities on Procore Technologies and Pegasystems 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 Procore Technologies with a short position of Pegasystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procore Technologies and Pegasystems.
Diversification Opportunities for Procore Technologies and Pegasystems
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Procore and Pegasystems is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Procore Technologies and Pegasystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasystems and Procore Technologies 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 Procore Technologies are associated (or correlated) with Pegasystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasystems has no effect on the direction of Procore Technologies i.e., Procore Technologies and Pegasystems go up and down completely randomly.
Pair Corralation between Procore Technologies and Pegasystems
Given the investment horizon of 90 days Procore Technologies is expected to generate 5.22 times less return on investment than Pegasystems. But when comparing it to its historical volatility, Procore Technologies is 1.38 times less risky than Pegasystems. It trades about 0.03 of its potential returns per unit of risk. Pegasystems is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,629 in Pegasystems on November 9, 2024 and sell it today you would earn a total of 5,898 from holding Pegasystems or generate 127.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procore Technologies vs. Pegasystems
Performance |
| Timeline |
| Procore Technologies |
| Pegasystems |
Procore Technologies and Pegasystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procore Technologies and Pegasystems
The main advantage of trading using opposite Procore Technologies and Pegasystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procore Technologies position performs unexpectedly, Pegasystems 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 Pegasystems will offset losses from the drop in Pegasystems' long position.| Procore Technologies vs. Paycor HCM | Procore Technologies vs. Clearwater Analytics Holdings | Procore Technologies vs. Alkami Technology | Procore Technologies vs. Jamf Holding |
| Pegasystems vs. Wex Inc | Pegasystems vs. Cognex | Pegasystems vs. Progress Software | Pegasystems vs. Fair Isaac |
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 CEOs Directory module to screen CEOs from public companies around the world.
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