Correlation Between Salesforce and AQ Group
Can any of the company-specific risk be diversified away by investing in both Salesforce and AQ Group 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 AQ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and AQ Group AB, you can compare the effects of market volatilities on Salesforce and AQ Group 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 AQ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and AQ Group.
Diversification Opportunities for Salesforce and AQ Group
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salesforce and AQ Group is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and AQ Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AQ Group AB 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 AQ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AQ Group AB has no effect on the direction of Salesforce i.e., Salesforce and AQ Group go up and down completely randomly.
Pair Corralation between Salesforce and AQ Group
Considering the 90-day investment horizon Salesforce is expected to generate 3.39 times less return on investment than AQ Group. But when comparing it to its historical volatility, Salesforce is 1.67 times less risky than AQ Group. It trades about 0.08 of its potential returns per unit of risk. AQ Group AB is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 14,458 in AQ Group AB on November 4, 2024 and sell it today you would earn a total of 1,442 from holding AQ Group AB or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Salesforce vs. AQ Group AB
Performance |
| Timeline |
| Salesforce |
| AQ Group AB |
Salesforce and AQ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and AQ Group
The main advantage of trading using opposite Salesforce and AQ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, AQ Group 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 AQ Group will offset losses from the drop in AQ Group's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| AQ Group vs. Inwido AB | AQ Group vs. Bufab Holding AB | AQ Group vs. Beijer Alma AB | AQ Group vs. Addtech AB |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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