Correlation Between Salesforce and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both Salesforce and Barclays ETN 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 Barclays ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Barclays ETN Shiller, you can compare the effects of market volatilities on Salesforce and Barclays ETN 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 Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Barclays ETN.
Diversification Opportunities for Salesforce and Barclays ETN
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Barclays is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Barclays ETN Shiller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN Shiller 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 Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN Shiller has no effect on the direction of Salesforce i.e., Salesforce and Barclays ETN go up and down completely randomly.
Pair Corralation between Salesforce and Barclays ETN
Considering the 90-day investment horizon Salesforce is expected to generate 2.46 times more return on investment than Barclays ETN. However, Salesforce is 2.46 times more volatile than Barclays ETN Shiller. It trades about 0.08 of its potential returns per unit of risk. Barclays ETN Shiller is currently generating about 0.07 per unit of risk. If you would invest 17,009 in Salesforce on October 25, 2024 and sell it today you would earn a total of 16,457 from holding Salesforce or generate 96.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Barclays ETN Shiller
Performance |
| Timeline |
| Salesforce |
| Barclays ETN Shiller |
Salesforce and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Barclays ETN
The main advantage of trading using opposite Salesforce and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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