Correlation Between Salesforce and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Salesforce and Amundi Index 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 Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Amundi Index Solutions, you can compare the effects of market volatilities on Salesforce and Amundi Index 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 Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Amundi Index.
Diversification Opportunities for Salesforce and Amundi Index
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salesforce and Amundi is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Salesforce i.e., Salesforce and Amundi Index go up and down completely randomly.
Pair Corralation between Salesforce and Amundi Index
Considering the 90-day investment horizon Salesforce is expected to generate 2.52 times more return on investment than Amundi Index. However, Salesforce is 2.52 times more volatile than Amundi Index Solutions. It trades about 0.1 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.11 per unit of risk. If you would invest 13,334 in Salesforce on August 25, 2024 and sell it today you would earn a total of 20,868 from holding Salesforce or generate 156.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.22% |
| Values | Daily Returns |
Salesforce vs. Amundi Index Solutions
Performance |
| Timeline |
| Salesforce |
| Amundi Index Solutions |
Salesforce and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Amundi Index
The main advantage of trading using opposite Salesforce and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Stoxx | Amundi Index vs. Amundi CAC 40 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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