Correlation Between Salesforce and China Resources
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By analyzing existing cross correlation between Salesforce and China Resources Boya, you can compare the effects of market volatilities on Salesforce and China Resources 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 Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and China Resources.
Diversification Opportunities for Salesforce and China Resources
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salesforce and China is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Salesforce i.e., Salesforce and China Resources go up and down completely randomly.
Pair Corralation between Salesforce and China Resources
Considering the 90-day investment horizon Salesforce is expected to generate 1.08 times less return on investment than China Resources. But when comparing it to its historical volatility, Salesforce is 1.14 times less risky than China Resources. It trades about 0.05 of its potential returns per unit of risk. China Resources Boya is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,560 in China Resources Boya on August 29, 2024 and sell it today you would earn a total of 536.00 from holding China Resources Boya or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.78% |
| Values | Daily Returns |
Salesforce vs. China Resources Boya
Performance |
| Timeline |
| Salesforce |
| China Resources Boya |
Salesforce and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and China Resources
The main advantage of trading using opposite Salesforce and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, China Resources 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 Resources will offset losses from the drop in China Resources' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| China Resources vs. Hainan Haiqi Transportation | China Resources vs. Metro Investment Development | China Resources vs. Sichuan Fulin Transportation | China Resources vs. Jiangsu Jinling Sports |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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