Correlation Between Salesforce and Campine
Can any of the company-specific risk be diversified away by investing in both Salesforce and Campine 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 Campine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Campine, you can compare the effects of market volatilities on Salesforce and Campine 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 Campine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Campine.
Diversification Opportunities for Salesforce and Campine
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salesforce and Campine is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Campine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campine 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 Campine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campine has no effect on the direction of Salesforce i.e., Salesforce and Campine go up and down completely randomly.
Pair Corralation between Salesforce and Campine
Considering the 90-day investment horizon Salesforce is expected to generate 1.71 times more return on investment than Campine. However, Salesforce is 1.71 times more volatile than Campine. It trades about 0.36 of its potential returns per unit of risk. Campine is currently generating about 0.05 per unit of risk. If you would invest 29,377 in Salesforce on August 27, 2024 and sell it today you would earn a total of 4,825 from holding Salesforce or generate 16.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Campine
Performance |
| Timeline |
| Salesforce |
| Campine |
Salesforce and Campine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Campine
The main advantage of trading using opposite Salesforce and Campine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Campine 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 Campine will offset losses from the drop in Campine's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Campine vs. Ackermans Van Haaren | Campine vs. NV Bekaert SA | Campine vs. Groep Brussel Lambert | Campine vs. Tubize Fin |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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