Correlation Between Salesforce and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Salesforce and Carlsberg 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 Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Carlsberg AS, you can compare the effects of market volatilities on Salesforce and Carlsberg 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 Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Carlsberg.
Diversification Opportunities for Salesforce and Carlsberg
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Carlsberg is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS 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 Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Salesforce i.e., Salesforce and Carlsberg go up and down completely randomly.
Pair Corralation between Salesforce and Carlsberg
Considering the 90-day investment horizon Salesforce is expected to generate 1.1 times more return on investment than Carlsberg. However, Salesforce is 1.1 times more volatile than Carlsberg AS. It trades about 0.28 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.16 per unit of risk. If you would invest 29,137 in Salesforce on September 1, 2024 and sell it today you would earn a total of 3,862 from holding Salesforce or generate 13.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Salesforce vs. Carlsberg AS
Performance |
| Timeline |
| Salesforce |
| Carlsberg AS |
Salesforce and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Carlsberg
The main advantage of trading using opposite Salesforce and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Carlsberg vs. AP Mller | Carlsberg vs. ROCKWOOL International AS | Carlsberg vs. Royal Unibrew AS | Carlsberg vs. Tryg AS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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