Correlation Between Procore Technologies, and United Airlines

Can any of the company-specific risk be diversified away by investing in both Procore Technologies, and United Airlines 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 United Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Procore Technologies, and United Airlines Holdings, you can compare the effects of market volatilities on Procore Technologies, and United Airlines 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 United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procore Technologies, and United Airlines.

Diversification Opportunities for Procore Technologies, and United Airlines

0.36

Correlation Coefficient

Procore Technologies,  United Airlines

Weak diversification

The 3 months correlation between Procore and United is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Procore Technologies, and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings 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 United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of Procore Technologies, i.e., Procore Technologies, and United Airlines go up and down completely randomly.

Pair Corralation between Procore Technologies, and United Airlines

Assuming the 90 days trading horizon Procore Technologies, is expected to generate 0.22 times more return on investment than United Airlines. However, Procore Technologies, is 4.6 times less risky than United Airlines. It trades about 0.08 of its potential returns per unit of risk. United Airlines Holdings is currently generating about 0.01 per unit of risk. If you would invest  3,876  in Procore Technologies, on March 21, 2025 and sell it today you would earn a total of  208.00  from holding Procore Technologies, or generate 5.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Procore Technologies,  vs.  United Airlines Holdings

Procore Technologies,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Procore Technologies, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Procore Technologies, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

United Airlines Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days United Airlines Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, United Airlines is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Procore Technologies, and United Airlines

The main advantage of trading using opposite Procore Technologies, and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procore Technologies, position performs unexpectedly, United Airlines 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 United Airlines will offset losses from the drop in United Airlines' long position.

The idea behind Procore Technologies, and United Airlines Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.