Correlation Between Salesforce and BTG Hotels
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By analyzing existing cross correlation between Salesforce and BTG Hotels Group, you can compare the effects of market volatilities on Salesforce and BTG Hotels 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 BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and BTG Hotels.
Diversification Opportunities for Salesforce and BTG Hotels
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Salesforce and BTG is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and BTG Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Hotels Group 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 BTG Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTG Hotels Group has no effect on the direction of Salesforce i.e., Salesforce and BTG Hotels go up and down completely randomly.
Pair Corralation between Salesforce and BTG Hotels
Considering the 90-day investment horizon Salesforce is expected to generate 1.13 times more return on investment than BTG Hotels. However, Salesforce is 1.13 times more volatile than BTG Hotels Group. It trades about 0.35 of its potential returns per unit of risk. BTG Hotels Group is currently generating about 0.04 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. BTG Hotels Group
Performance |
| Timeline |
| Salesforce |
| BTG Hotels Group |
Salesforce and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and BTG Hotels
The main advantage of trading using opposite Salesforce and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, BTG Hotels 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 BTG Hotels will offset losses from the drop in BTG Hotels' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| BTG Hotels vs. Biwin Storage Technology | BTG Hotels vs. PetroChina Co Ltd | BTG Hotels vs. Industrial and Commercial | BTG Hotels vs. China Construction Bank |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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