Correlation Between Procore Technologies and Belden

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

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

Diversification Opportunities for Procore Technologies and Belden

0.59

Correlation Coefficient

Procore Technologies  Belden

Very weak diversification

The 3 months correlation between Procore and Belden is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Procore Technologies and Belden Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belden Inc 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 Belden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belden Inc has no effect on the direction of Procore Technologies i.e., Procore Technologies and Belden go up and down completely randomly.

Pair Corralation between Procore Technologies and Belden

Given the investment horizon of 90 days Procore Technologies is expected to generate 1.46 times less return on investment than Belden. In addition to that, Procore Technologies is 1.26 times more volatile than Belden Inc. It trades about 0.03 of its total potential returns per unit of risk. Belden Inc is currently generating about 0.06 per unit of volatility. If you would invest  9,649  in Belden Inc on May 1, 2025 and sell it today you would earn a total of  3,400  from holding Belden Inc or generate 35.24% return on investment over 90 days.

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

Procore Technologies  vs.  Belden Inc

Procore Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Procore Technologies are ranked lower than 13 (%) 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.

Belden Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Belden Inc are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Belden exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Procore Technologies and Belden

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

The idea behind Procore Technologies and Belden Inc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.