Correlation Between Salesforce and China Finance
Can any of the company-specific risk be diversified away by investing in both Salesforce and China Finance 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 China Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and China Finance, you can compare the effects of market volatilities on Salesforce and China Finance 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 China Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and China Finance.
Diversification Opportunities for Salesforce and China Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and China Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Finance 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 China Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Finance has no effect on the direction of Salesforce i.e., Salesforce and China Finance go up and down completely randomly.
Pair Corralation between Salesforce and China Finance
If you would invest 29,788 in Salesforce on November 7, 2024 and sell it today you would earn a total of 4,626 from holding Salesforce or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Salesforce vs. China Finance
Performance |
| Timeline |
| Salesforce |
| China Finance |
Salesforce and China Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and China Finance
The main advantage of trading using opposite Salesforce and China Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, China Finance 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 China Finance will offset losses from the drop in China Finance's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| China Finance vs. Corning Incorporated | China Finance vs. Gfl Environmental Holdings | China Finance vs. NH Foods Ltd | China Finance vs. Gerdau SA ADR |
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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