Correlation Between Salesforce and SGA Solutions
Can any of the company-specific risk be diversified away by investing in both Salesforce and SGA Solutions 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 SGA Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and SGA Solutions CoLtd, you can compare the effects of market volatilities on Salesforce and SGA Solutions 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 SGA Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and SGA Solutions.
Diversification Opportunities for Salesforce and SGA Solutions
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and SGA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and SGA Solutions CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGA Solutions CoLtd 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 SGA Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGA Solutions CoLtd has no effect on the direction of Salesforce i.e., Salesforce and SGA Solutions go up and down completely randomly.
Pair Corralation between Salesforce and SGA Solutions
Considering the 90-day investment horizon Salesforce is expected to generate 2.05 times less return on investment than SGA Solutions. But when comparing it to its historical volatility, Salesforce is 1.2 times less risky than SGA Solutions. It trades about 0.02 of its potential returns per unit of risk. SGA Solutions CoLtd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 47,905 in SGA Solutions CoLtd on October 17, 2024 and sell it today you would earn a total of 795.00 from holding SGA Solutions CoLtd or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.44% |
| Values | Daily Returns |
Salesforce vs. SGA Solutions CoLtd
Performance |
| Timeline |
| Salesforce |
| SGA Solutions CoLtd |
Salesforce and SGA Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and SGA Solutions
The main advantage of trading using opposite Salesforce and SGA Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, SGA Solutions 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 SGA Solutions will offset losses from the drop in SGA Solutions' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| SGA Solutions vs. KMH Hitech Co | SGA Solutions vs. GemVaxKAEL CoLtd | SGA Solutions vs. Bosung Power Technology | SGA Solutions vs. Busan Industrial Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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