Correlation Between Salesforce and Kingcan Holdings
Can any of the company-specific risk be diversified away by investing in both Salesforce and Kingcan Holdings 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 Kingcan Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Kingcan Holdings, you can compare the effects of market volatilities on Salesforce and Kingcan Holdings 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 Kingcan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Kingcan Holdings.
Diversification Opportunities for Salesforce and Kingcan Holdings
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salesforce and Kingcan is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Kingcan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingcan Holdings 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 Kingcan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingcan Holdings has no effect on the direction of Salesforce i.e., Salesforce and Kingcan Holdings go up and down completely randomly.
Pair Corralation between Salesforce and Kingcan Holdings
Considering the 90-day investment horizon Salesforce is expected to under-perform the Kingcan Holdings. In addition to that, Salesforce is 2.96 times more volatile than Kingcan Holdings. It trades about -0.4 of its total potential returns per unit of risk. Kingcan Holdings is currently generating about 0.17 per unit of volatility. If you would invest 1,325 in Kingcan Holdings on December 1, 2024 and sell it today you would earn a total of 25.00 from holding Kingcan Holdings or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Salesforce vs. Kingcan Holdings
Performance |
| Timeline |
| Salesforce |
| Kingcan Holdings |
Salesforce and Kingcan Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Kingcan Holdings
The main advantage of trading using opposite Salesforce and Kingcan Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Kingcan Holdings 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 Kingcan Holdings will offset losses from the drop in Kingcan Holdings' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Kingcan Holdings vs. Jinli Group Holdings | Kingcan Holdings vs. Shinih Enterprise Co | Kingcan Holdings vs. Super Dragon Technology | Kingcan Holdings vs. Shui Mu International Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |