Correlation Between Salesforce and Blackstone Mortgage
Can any of the company-specific risk be diversified away by investing in both Salesforce and Blackstone Mortgage 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 Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Blackstone Mortgage Trust, you can compare the effects of market volatilities on Salesforce and Blackstone Mortgage 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 Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Blackstone Mortgage.
Diversification Opportunities for Salesforce and Blackstone Mortgage
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salesforce and Blackstone is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Blackstone Mortgage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Mortgage Trust 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 Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Mortgage Trust has no effect on the direction of Salesforce i.e., Salesforce and Blackstone Mortgage go up and down completely randomly.
Pair Corralation between Salesforce and Blackstone Mortgage
Considering the 90-day investment horizon Salesforce is expected to generate 1.39 times more return on investment than Blackstone Mortgage. However, Salesforce is 1.39 times more volatile than Blackstone Mortgage Trust. It trades about 0.34 of its potential returns per unit of risk. Blackstone Mortgage Trust is currently generating about 0.07 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. Blackstone Mortgage Trust
Performance |
| Timeline |
| Salesforce |
| Blackstone Mortgage Trust |
Salesforce and Blackstone Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Blackstone Mortgage
The main advantage of trading using opposite Salesforce and Blackstone Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Blackstone Mortgage 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 Mortgage will offset losses from the drop in Blackstone Mortgage's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Blackstone Mortgage vs. Starwood Property Trust | Blackstone Mortgage vs. Rithm Capital Corp | Blackstone Mortgage vs. AGNC Investment Corp | Blackstone Mortgage vs. Ares Commercial Real |
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.
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