Correlation Between Salesforce and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Salesforce and Bangkok Bank 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 Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Bangkok Bank Public, you can compare the effects of market volatilities on Salesforce and Bangkok Bank 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 Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Bangkok Bank.
Diversification Opportunities for Salesforce and Bangkok Bank
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salesforce and Bangkok is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank 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 Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Salesforce i.e., Salesforce and Bangkok Bank go up and down completely randomly.
Pair Corralation between Salesforce and Bangkok Bank
Considering the 90-day investment horizon Salesforce is expected to generate 2.28 times more return on investment than Bangkok Bank. However, Salesforce is 2.28 times more volatile than Bangkok Bank Public. It trades about 0.34 of its potential returns per unit of risk. Bangkok Bank Public is currently generating about -0.06 per unit of risk. If you would invest 29,377 in Salesforce on August 28, 2024 and sell it today you would earn a total of 4,534 from holding Salesforce or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Bangkok Bank Public
Performance |
| Timeline |
| Salesforce |
| Bangkok Bank Public |
Salesforce and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Bangkok Bank
The main advantage of trading using opposite Salesforce and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Bangkok Bank 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 Bank will offset losses from the drop in Bangkok Bank's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Bangkok Bank vs. Thai Energy Storage | Bangkok Bank vs. Royal Orchid Hotel | Bangkok Bank vs. Grand Canal Land | Bangkok Bank vs. PRG Public |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |