Correlation Between Salesforce and Annexin Pharmaceuticals

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Salesforce and Annexin Pharmaceuticals 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 Annexin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Annexin Pharmaceuticals AB, you can compare the effects of market volatilities on Salesforce and Annexin Pharmaceuticals 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 Annexin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Annexin Pharmaceuticals.

Diversification Opportunities for Salesforce and Annexin Pharmaceuticals

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Salesforce and Annexin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Annexin Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexin Pharmaceuticals 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 Annexin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexin Pharmaceuticals has no effect on the direction of Salesforce i.e., Salesforce and Annexin Pharmaceuticals go up and down completely randomly.

Pair Corralation between Salesforce and Annexin Pharmaceuticals

Considering the 90-day investment horizon Salesforce is expected to generate 0.5 times more return on investment than Annexin Pharmaceuticals. However, Salesforce is 2.02 times less risky than Annexin Pharmaceuticals. It trades about 0.23 of its potential returns per unit of risk. Annexin Pharmaceuticals AB is currently generating about 0.02 per unit of risk. If you would invest  29,801  in Salesforce on September 3, 2024 and sell it today you would earn a total of  3,198  from holding Salesforce or generate 10.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.24%
ValuesDaily Returns

Salesforce  vs.  Annexin Pharmaceuticals AB

 Performance 
       Timeline  
Salesforce 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Salesforce displayed solid returns over the last few months and may actually be approaching a breakup point.
Annexin Pharmaceuticals 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Annexin Pharmaceuticals AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Annexin Pharmaceuticals is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Salesforce and Annexin Pharmaceuticals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Salesforce and Annexin Pharmaceuticals

The main advantage of trading using opposite Salesforce and Annexin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Annexin Pharmaceuticals 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 Annexin Pharmaceuticals will offset losses from the drop in Annexin Pharmaceuticals' long position.
The idea behind Salesforce and Annexin Pharmaceuticals AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios