Correlation Between Procore Technologies and D Wave

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

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

Diversification Opportunities for Procore Technologies and D Wave

0.55

Correlation Coefficient

Procore Technologies  D Wave

Very weak diversification

The 3 months correlation between Procore and QBTS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Procore Technologies and D Wave Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on D Wave Quantum 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 D Wave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of D Wave Quantum has no effect on the direction of Procore Technologies i.e., Procore Technologies and D Wave go up and down completely randomly.

Pair Corralation between Procore Technologies and D Wave

Given the investment horizon of 90 days Procore Technologies is expected to generate 4.14 times less return on investment than D Wave. But when comparing it to its historical volatility, Procore Technologies is 2.71 times less risky than D Wave. It trades about 0.09 of its potential returns per unit of risk. D Wave Quantum is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,506  in D Wave Quantum on August 20, 2025 and sell it today you would earn a total of  855.00  from holding D Wave Quantum or generate 56.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Procore Technologies  vs.  D Wave Quantum

Procore Technologies

Risk-Adjusted Performance

Mild

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. Even with relatively weak basic indicators, Procore Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

D Wave Quantum

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in D Wave Quantum are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, D Wave unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Procore Technologies and D Wave

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

The idea behind Procore Technologies and D Wave Quantum 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.