Correlation Between Salesforce and China Baoan
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By analyzing existing cross correlation between Salesforce and China Baoan Group, you can compare the effects of market volatilities on Salesforce and China Baoan 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 China Baoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and China Baoan.
Diversification Opportunities for Salesforce and China Baoan
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and China is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and China Baoan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Baoan Group 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 Salesforce are associated (or correlated) with China Baoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Baoan Group has no effect on the direction of Salesforce i.e., Salesforce and China Baoan go up and down completely randomly.
Pair Corralation between Salesforce and China Baoan
Considering the 90-day investment horizon Salesforce is expected to generate 1.72 times more return on investment than China Baoan. However, Salesforce is 1.72 times more volatile than China Baoan Group. It trades about 0.12 of its potential returns per unit of risk. China Baoan Group is currently generating about -0.28 per unit of risk. If you would invest 33,053 in Salesforce on November 7, 2024 and sell it today you would earn a total of 1,361 from holding Salesforce or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Salesforce vs. China Baoan Group
Performance |
| Timeline |
| Salesforce |
| China Baoan Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and China Baoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and China Baoan
The main advantage of trading using opposite Salesforce and China Baoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, China Baoan 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 China Baoan will offset losses from the drop in China Baoan's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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