Correlation Between Salesforce and JC Decaux
Can any of the company-specific risk be diversified away by investing in both Salesforce and JC Decaux 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 JC Decaux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and JC Decaux SA, you can compare the effects of market volatilities on Salesforce and JC Decaux 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 JC Decaux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and JC Decaux.
Diversification Opportunities for Salesforce and JC Decaux
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and DEC is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and JC Decaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JC Decaux SA 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 JC Decaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JC Decaux SA has no effect on the direction of Salesforce i.e., Salesforce and JC Decaux go up and down completely randomly.
Pair Corralation between Salesforce and JC Decaux
Considering the 90-day investment horizon Salesforce is expected to generate 0.81 times more return on investment than JC Decaux. However, Salesforce is 1.24 times less risky than JC Decaux. It trades about 0.28 of its potential returns per unit of risk. JC Decaux SA is currently generating about -0.31 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 | 91.3% |
| Values | Daily Returns |
Salesforce vs. JC Decaux SA
Performance |
| Timeline |
| Salesforce |
| JC Decaux SA |
Salesforce and JC Decaux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and JC Decaux
The main advantage of trading using opposite Salesforce and JC Decaux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, JC Decaux 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 JC Decaux will offset losses from the drop in JC Decaux's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| JC Decaux vs. Publicis Groupe SA | JC Decaux vs. Lagardere SCA | JC Decaux vs. Sodexo SA | JC Decaux vs. Imerys SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |