Correlation Between Salesforce and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both Salesforce and BurTech Acquisition 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 BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and BurTech Acquisition Corp, you can compare the effects of market volatilities on Salesforce and BurTech Acquisition 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 BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and BurTech Acquisition.
Diversification Opportunities for Salesforce and BurTech Acquisition
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Salesforce and BurTech is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition 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 BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of Salesforce i.e., Salesforce and BurTech Acquisition go up and down completely randomly.
Pair Corralation between Salesforce and BurTech Acquisition
Considering the 90-day investment horizon Salesforce is expected to generate 11.35 times more return on investment than BurTech Acquisition. However, Salesforce is 11.35 times more volatile than BurTech Acquisition Corp. It trades about 0.28 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.19 per unit of risk. If you would invest 29,137 in Salesforce on September 1, 2024 and sell it today you would earn a total of 3,862 from holding Salesforce or generate 13.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. BurTech Acquisition Corp
Performance |
| Timeline |
| Salesforce |
| BurTech Acquisition Corp |
Salesforce and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and BurTech Acquisition
The main advantage of trading using opposite Salesforce and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, BurTech Acquisition 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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