Correlation Between Digimarc and Procore Technologies

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

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

Diversification Opportunities for Digimarc and Procore Technologies

0.74

Correlation Coefficient

Digimarc  Procore Technologies

Poor diversification

The 3 months correlation between Digimarc and Procore is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and Procore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procore Technologies and Digimarc 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 Digimarc 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 Digimarc i.e., Digimarc and Procore Technologies go up and down completely randomly.

Pair Corralation between Digimarc and Procore Technologies

Given the investment horizon of 90 days Digimarc is expected to generate 6.5 times less return on investment than Procore Technologies. In addition to that, Digimarc is 1.39 times more volatile than Procore Technologies. It trades about 0.04 of its total potential returns per unit of risk. Procore Technologies is currently generating about 0.36 per unit of volatility. If you would invest  6,418  in Procore Technologies on April 14, 2025 and sell it today you would earn a total of  739.00  from holding Procore Technologies or generate 11.51% return on investment over 90 days.

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

Digimarc  vs.  Procore Technologies

Digimarc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Digimarc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Digimarc may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Procore Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Procore Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Procore Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Digimarc and Procore Technologies

The main advantage of trading using opposite Digimarc and Procore Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc 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 Digimarc 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.