Correlation Between Salesforce and Huali Industrial
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By analyzing existing cross correlation between Salesforce and Huali Industrial Group, you can compare the effects of market volatilities on Salesforce and Huali Industrial 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 Huali Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Huali Industrial.
Diversification Opportunities for Salesforce and Huali Industrial
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and Huali is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Huali Industrial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huali Industrial 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 Huali Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huali Industrial has no effect on the direction of Salesforce i.e., Salesforce and Huali Industrial go up and down completely randomly.
Pair Corralation between Salesforce and Huali Industrial
Considering the 90-day investment horizon Salesforce is expected to generate 0.85 times more return on investment than Huali Industrial. However, Salesforce is 1.18 times less risky than Huali Industrial. It trades about 0.11 of its potential returns per unit of risk. Huali Industrial Group is currently generating about 0.05 per unit of risk. If you would invest 12,955 in Salesforce on August 29, 2024 and sell it today you would earn a total of 21,363 from holding Salesforce or generate 164.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.36% |
| Values | Daily Returns |
Salesforce vs. Huali Industrial Group
Performance |
| Timeline |
| Salesforce |
| Huali Industrial |
Salesforce and Huali Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Huali Industrial
The main advantage of trading using opposite Salesforce and Huali Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Huali Industrial 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 Huali Industrial will offset losses from the drop in Huali Industrial's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Huali Industrial vs. Shenzhen Centralcon Investment | Huali Industrial vs. Sunwave Communications Co | Huali Industrial vs. Nanjing Putian Telecommunications | Huali Industrial vs. Vanfund Urban Investment |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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