Correlation Between Salesforce and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both Salesforce and Aenza SAA 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 Aenza SAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Aenza SAA, you can compare the effects of market volatilities on Salesforce and Aenza SAA 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 Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Aenza SAA.
Diversification Opportunities for Salesforce and Aenza SAA
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Aenza is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA 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 Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of Salesforce i.e., Salesforce and Aenza SAA go up and down completely randomly.
Pair Corralation between Salesforce and Aenza SAA
If you would invest 33,053 in Salesforce on November 5, 2024 and sell it today you would earn a total of 1,117 from holding Salesforce or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Salesforce vs. Aenza SAA
Performance |
| Timeline |
| Salesforce |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Aenza SAA
The main advantage of trading using opposite Salesforce and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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