Correlation Between Salesforce and Bosung Power
Can any of the company-specific risk be diversified away by investing in both Salesforce and Bosung Power 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 Bosung Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Bosung Power Technology, you can compare the effects of market volatilities on Salesforce and Bosung Power 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 Bosung Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Bosung Power.
Diversification Opportunities for Salesforce and Bosung Power
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Salesforce and Bosung is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Bosung Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosung Power Technology 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 Bosung Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosung Power Technology has no effect on the direction of Salesforce i.e., Salesforce and Bosung Power go up and down completely randomly.
Pair Corralation between Salesforce and Bosung Power
Considering the 90-day investment horizon Salesforce is expected to generate 1.05 times more return on investment than Bosung Power. However, Salesforce is 1.05 times more volatile than Bosung Power Technology. It trades about 0.35 of its potential returns per unit of risk. Bosung Power Technology is currently generating about -0.18 per unit of risk. If you would invest 29,377 in Salesforce on August 29, 2024 and sell it today you would earn a total of 4,941 from holding Salesforce or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Bosung Power Technology
Performance |
| Timeline |
| Salesforce |
| Bosung Power Technology |
Salesforce and Bosung Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Bosung Power
The main advantage of trading using opposite Salesforce and Bosung Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Bosung Power 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 Bosung Power will offset losses from the drop in Bosung Power's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Bosung Power vs. Samsung Electronics Co | Bosung Power vs. Samsung Electronics Co | Bosung Power vs. KB Financial Group | Bosung Power vs. Shinhan Financial Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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