Correlation Between Salesforce and Blackstone
Can any of the company-specific risk be diversified away by investing in both Salesforce and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Blackstone Group, you can compare the effects of market volatilities on Salesforce and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Blackstone.
Diversification Opportunities for Salesforce and Blackstone
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salesforce and Blackstone is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Salesforce i.e., Salesforce and Blackstone go up and down completely randomly.
Pair Corralation between Salesforce and Blackstone
Considering the 90-day investment horizon Salesforce is expected to generate 1.0 times less return on investment than Blackstone. But when comparing it to its historical volatility, Salesforce is 1.06 times less risky than Blackstone. It trades about 0.1 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,306 in Blackstone Group on September 3, 2024 and sell it today you would earn a total of 10,814 from holding Blackstone Group or generate 148.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.02% |
| Values | Daily Returns |
Salesforce vs. Blackstone Group
Performance |
| Timeline |
| Salesforce |
| Blackstone Group |
Salesforce and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Blackstone
The main advantage of trading using opposite Salesforce and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Blackstone vs. CSSC Offshore Marine | Blackstone vs. OFFICE DEPOT | Blackstone vs. Solstad Offshore ASA | Blackstone vs. SOFI TECHNOLOGIES |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |