Correlation Between Salesforce and Can Fite
Can any of the company-specific risk be diversified away by investing in both Salesforce and Can Fite 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 Can Fite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Can Fite Biopharma, you can compare the effects of market volatilities on Salesforce and Can Fite 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 Can Fite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Can Fite.
Diversification Opportunities for Salesforce and Can Fite
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Can is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Can Fite Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fite Biopharma 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 Can Fite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fite Biopharma has no effect on the direction of Salesforce i.e., Salesforce and Can Fite go up and down completely randomly.
Pair Corralation between Salesforce and Can Fite
Considering the 90-day investment horizon Salesforce is expected to generate 0.31 times more return on investment than Can Fite. However, Salesforce is 3.27 times less risky than Can Fite. It trades about 0.16 of its potential returns per unit of risk. Can Fite Biopharma is currently generating about 0.02 per unit of risk. If you would invest 23,588 in Salesforce on September 1, 2024 and sell it today you would earn a total of 9,411 from holding Salesforce or generate 39.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Can Fite Biopharma
Performance |
| Timeline |
| Salesforce |
| Can Fite Biopharma |
Salesforce and Can Fite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Can Fite
The main advantage of trading using opposite Salesforce and Can Fite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Can Fite 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 Can Fite will offset losses from the drop in Can Fite's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Can Fite vs. ImmuCell | Can Fite vs. Compugen | Can Fite vs. Evogene | Can Fite vs. Collplant Biotechnologies |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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