Correlation Between Salesforce and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Salesforce and BIT Mining 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 BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and BIT Mining, you can compare the effects of market volatilities on Salesforce and BIT Mining 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 BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and BIT Mining.
Diversification Opportunities for Salesforce and BIT Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and BIT is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining 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 BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Salesforce i.e., Salesforce and BIT Mining go up and down completely randomly.
Pair Corralation between Salesforce and BIT Mining
Considering the 90-day investment horizon Salesforce is expected to under-perform the BIT Mining. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 3.82 times less risky than BIT Mining. The stock trades about -0.13 of its potential returns per unit of risk. The BIT Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 289.00 in BIT Mining on October 25, 2024 and sell it today you would earn a total of 3.00 from holding BIT Mining or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. BIT Mining
Performance |
| Timeline |
| Salesforce |
| BIT Mining |
Salesforce and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and BIT Mining
The main advantage of trading using opposite Salesforce and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, BIT Mining 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 BIT Mining will offset losses from the drop in BIT Mining's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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