Correlation Between PROS Holdings and Red Hat
Can any of the company-specific risk be diversified away by investing in both PROS Holdings and Red Hat 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 PROS Holdings and Red Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PROS Holdings and Red Hat, you can compare the effects of market volatilities on PROS Holdings and Red Hat 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 PROS Holdings with a short position of Red Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROS Holdings and Red Hat.
Diversification Opportunities for PROS Holdings and Red Hat
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PROS and Red is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PROS Holdings and Red Hat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Hat and PROS Holdings 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 PROS Holdings are associated (or correlated) with Red Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Hat has no effect on the direction of PROS Holdings i.e., PROS Holdings and Red Hat go up and down completely randomly.
Pair Corralation between PROS Holdings and Red Hat
If you would invest (100.00) in Red Hat on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Red Hat or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PROS Holdings vs. Red Hat
Performance |
| Timeline |
| PROS Holdings |
| Red Hat |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PROS Holdings and Red Hat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROS Holdings and Red Hat
The main advantage of trading using opposite PROS Holdings and Red Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROS Holdings position performs unexpectedly, Red Hat 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 Red Hat will offset losses from the drop in Red Hat's long position.| PROS Holdings vs. C3 Ai Inc | PROS Holdings vs. Shopify | PROS Holdings vs. Snowflake | PROS Holdings vs. ServiceNow |
| Red Hat vs. Logan Ridge Finance | Red Hat vs. MGIC Investment Corp | Red Hat vs. Ameriprise Financial | Red Hat vs. Cincinnati Financial |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |