Correlation Between Salesforce and CH Karnchang
Can any of the company-specific risk be diversified away by investing in both Salesforce and CH Karnchang 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 CH Karnchang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and CH Karnchang Public, you can compare the effects of market volatilities on Salesforce and CH Karnchang 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 CH Karnchang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and CH Karnchang.
Diversification Opportunities for Salesforce and CH Karnchang
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and CH Karnchang is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and CH Karnchang Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Karnchang Public 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 CH Karnchang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Karnchang Public has no effect on the direction of Salesforce i.e., Salesforce and CH Karnchang go up and down completely randomly.
Pair Corralation between Salesforce and CH Karnchang
Considering the 90-day investment horizon Salesforce is expected to generate 1.22 times more return on investment than CH Karnchang. However, Salesforce is 1.22 times more volatile than CH Karnchang Public. It trades about 0.35 of its potential returns per unit of risk. CH Karnchang Public is currently generating about -0.09 per unit of risk. If you would invest 29,377 in Salesforce on August 29, 2024 and sell it today you would earn a total of 4,941 from holding Salesforce or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. CH Karnchang Public
Performance |
| Timeline |
| Salesforce |
| CH Karnchang Public |
Salesforce and CH Karnchang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and CH Karnchang
The main advantage of trading using opposite Salesforce and CH Karnchang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, CH Karnchang 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 CH Karnchang will offset losses from the drop in CH Karnchang'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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