Correlation Between Procore Technologies and Mastech Holdings

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

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

Diversification Opportunities for Procore Technologies and Mastech Holdings

0.59

Correlation Coefficient

Procore Technologies  Mastech Holdings

Very weak diversification

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

Pair Corralation between Procore Technologies and Mastech Holdings

Given the investment horizon of 90 days Procore Technologies is expected to generate 0.66 times more return on investment than Mastech Holdings. However, Procore Technologies is 1.51 times less risky than Mastech Holdings. It trades about -0.03 of its potential returns per unit of risk. Mastech Holdings is currently generating about -0.11 per unit of risk. If you would invest  7,537  in Procore Technologies on December 28, 2024 and sell it today you would lose (609.00) from holding Procore Technologies or give up 8.08% of portfolio value over 90 days.

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

Procore Technologies  vs.  Mastech Holdings

Procore Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Procore Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Procore Technologies is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Mastech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mastech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Procore Technologies and Mastech Holdings

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

The idea behind Procore Technologies and Mastech Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.