Correlation Between Workiva and Procore Technologies

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

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

Diversification Opportunities for Workiva and Procore Technologies

-0.4

Correlation Coefficient

Workiva  Procore Technologies

Very good diversification

The 3 months correlation between Workiva and Procore is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Procore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procore Technologies and Workiva 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 Workiva 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 Workiva i.e., Workiva and Procore Technologies go up and down completely randomly.

Pair Corralation between Workiva and Procore Technologies

Allowing for the 90-day total investment horizon Workiva is expected to generate 1.95 times more return on investment than Procore Technologies. However, Workiva is 1.95 times more volatile than Procore Technologies. It trades about 0.02 of its potential returns per unit of risk. Procore Technologies is currently generating about -0.08 per unit of risk. If you would invest  7,174  in Workiva on May 15, 2025 and sell it today you would earn a total of  118.00  from holding Workiva or generate 1.64% return on investment over 90 days.

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

Workiva  vs.  Procore Technologies

Workiva

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Workiva are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile forward-looking signals, Workiva may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Procore Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Procore Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Workiva and Procore Technologies

The main advantage of trading using opposite Workiva and Procore Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva 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 Workiva 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.