Correlation Between Salesforce and GrandTech
Can any of the company-specific risk be diversified away by investing in both Salesforce and GrandTech 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 GrandTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and GrandTech CG Systems, you can compare the effects of market volatilities on Salesforce and GrandTech 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 GrandTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and GrandTech.
Diversification Opportunities for Salesforce and GrandTech
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salesforce and GrandTech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and GrandTech CG Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrandTech CG Systems 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 GrandTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrandTech CG Systems has no effect on the direction of Salesforce i.e., Salesforce and GrandTech go up and down completely randomly.
Pair Corralation between Salesforce and GrandTech
Considering the 90-day investment horizon Salesforce is expected to under-perform the GrandTech. In addition to that, Salesforce is 2.04 times more volatile than GrandTech CG Systems. It trades about -0.3 of its total potential returns per unit of risk. GrandTech CG Systems is currently generating about 0.3 per unit of volatility. If you would invest 5,550 in GrandTech CG Systems on November 28, 2024 and sell it today you would earn a total of 250.00 from holding GrandTech CG Systems or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Salesforce vs. GrandTech CG Systems
Performance |
| Timeline |
| Salesforce |
| GrandTech CG Systems |
Salesforce and GrandTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and GrandTech
The main advantage of trading using opposite Salesforce and GrandTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, GrandTech 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 GrandTech will offset losses from the drop in GrandTech's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| GrandTech vs. Elan Microelectronics Corp | GrandTech vs. Cameo Communications | GrandTech vs. Far EasTone Telecommunications | GrandTech vs. Tai Tung Communication |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |