Correlation Between Salesforce and Bonterra Energy
Can any of the company-specific risk be diversified away by investing in both Salesforce and Bonterra Energy 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 Bonterra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Bonterra Energy Corp, you can compare the effects of market volatilities on Salesforce and Bonterra Energy 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 Bonterra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Bonterra Energy.
Diversification Opportunities for Salesforce and Bonterra Energy
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Bonterra is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Bonterra Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonterra Energy Corp 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 Bonterra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonterra Energy Corp has no effect on the direction of Salesforce i.e., Salesforce and Bonterra Energy go up and down completely randomly.
Pair Corralation between Salesforce and Bonterra Energy
Considering the 90-day investment horizon Salesforce is expected to generate 0.64 times more return on investment than Bonterra Energy. However, Salesforce is 1.56 times less risky than Bonterra Energy. It trades about 0.17 of its potential returns per unit of risk. Bonterra Energy Corp is currently generating about -0.11 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Bonterra Energy Corp
Performance |
| Timeline |
| Salesforce |
| Bonterra Energy Corp |
Salesforce and Bonterra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Bonterra Energy
The main advantage of trading using opposite Salesforce and Bonterra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Bonterra Energy 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 Bonterra Energy will offset losses from the drop in Bonterra Energy's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Bonterra Energy vs. Aminex PLC | Bonterra Energy vs. Questerre Energy | Bonterra Energy vs. FAR Limited | Bonterra Energy vs. PetroShale |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |