Correlation Between Salesforce and Carrefour
Can any of the company-specific risk be diversified away by investing in both Salesforce and Carrefour 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 Carrefour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Carrefour SA PK, you can compare the effects of market volatilities on Salesforce and Carrefour 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 Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Carrefour.
Diversification Opportunities for Salesforce and Carrefour
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and Carrefour is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Carrefour SA PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA PK 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 Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrefour SA PK has no effect on the direction of Salesforce i.e., Salesforce and Carrefour go up and down completely randomly.
Pair Corralation between Salesforce and Carrefour
Considering the 90-day investment horizon Salesforce is expected to under-perform the Carrefour. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 1.61 times less risky than Carrefour. The stock trades about -0.28 of its potential returns per unit of risk. The Carrefour SA PK is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Carrefour SA PK on October 24, 2024 and sell it today you would earn a total of 3.00 from holding Carrefour SA PK or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Carrefour SA PK
Performance |
| Timeline |
| Salesforce |
| Carrefour SA PK |
Salesforce and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Carrefour
The main advantage of trading using opposite Salesforce and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Carrefour 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 Carrefour will offset losses from the drop in Carrefour's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Carrefour vs. Kesko Oyj ADR | Carrefour vs. Carrefour SA | Carrefour vs. J Sainsbury plc | Carrefour vs. Om Holdings International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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