Correlation Between Salesforce and Shoper SA
Can any of the company-specific risk be diversified away by investing in both Salesforce and Shoper SA 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 Salesforce and Shoper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PZ Cormay SA and Shoper SA, you can compare the effects of market volatilities on Salesforce and Shoper SA 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 Salesforce with a short position of Shoper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Shoper SA.
Diversification Opportunities for Salesforce and Shoper SA
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Shoper is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding PZ Cormay SA and Shoper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoper SA and Salesforce 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 PZ Cormay SA are associated (or correlated) with Shoper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoper SA has no effect on the direction of Salesforce i.e., Salesforce and Shoper SA go up and down completely randomly.
Pair Corralation between Salesforce and Shoper SA
Assuming the 90 days trading horizon PZ Cormay SA is expected to under-perform the Shoper SA. But the stock apears to be less risky and, when comparing its historical volatility, PZ Cormay SA is 1.22 times less risky than Shoper SA. The stock trades about -0.06 of its potential returns per unit of risk. The Shoper SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,843 in Shoper SA on September 3, 2024 and sell it today you would earn a total of 1,507 from holding Shoper SA or generate 53.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PZ Cormay SA vs. Shoper SA
Performance |
| Timeline |
| PZ Cormay SA |
| Shoper SA |
Salesforce and Shoper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Shoper SA
The main advantage of trading using opposite Salesforce and Shoper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Shoper SA 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 Shoper SA will offset losses from the drop in Shoper SA's long position.| Salesforce vs. Banco Santander SA | Salesforce vs. UniCredit SpA | Salesforce vs. CEZ as | Salesforce vs. Polski Koncern Naftowy |
| Shoper SA vs. Bank Millennium SA | Shoper SA vs. CI Games SA | Shoper SA vs. Saule Technologies SA | Shoper SA vs. UniCredit SpA |
Check out your portfolio center.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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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