Correlation Between Salesforce and Bangkok Airways
Can any of the company-specific risk be diversified away by investing in both Salesforce and Bangkok Airways 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 Bangkok Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Bangkok Airways Public, you can compare the effects of market volatilities on Salesforce and Bangkok Airways 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 Bangkok Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Bangkok Airways.
Diversification Opportunities for Salesforce and Bangkok Airways
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and Bangkok is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Bangkok Airways Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Airways Public 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 Bangkok Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Airways Public has no effect on the direction of Salesforce i.e., Salesforce and Bangkok Airways go up and down completely randomly.
Pair Corralation between Salesforce and Bangkok Airways
Considering the 90-day investment horizon Salesforce is expected to generate 0.82 times more return on investment than Bangkok Airways. However, Salesforce is 1.22 times less risky than Bangkok Airways. It trades about 0.17 of its potential returns per unit of risk. Bangkok Airways Public is currently generating about 0.05 per unit of risk. If you would invest 23,413 in Salesforce on September 2, 2024 and sell it today you would earn a total of 9,586 from holding Salesforce or generate 40.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Salesforce vs. Bangkok Airways Public
Performance |
| Timeline |
| Salesforce |
| Bangkok Airways Public |
Salesforce and Bangkok Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Bangkok Airways
The main advantage of trading using opposite Salesforce and Bangkok Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Bangkok Airways 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 Bangkok Airways will offset losses from the drop in Bangkok Airways' long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Bangkok Airways vs. Asia Aviation Public | Bangkok Airways vs. Bangkok Dusit Medical | Bangkok Airways vs. Bangkok Expressway and | Bangkok Airways vs. Airports of Thailand |
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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