Correlation Between Salesforce and Desenio Group
Can any of the company-specific risk be diversified away by investing in both Salesforce and Desenio Group 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 Desenio Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Desenio Group AB, you can compare the effects of market volatilities on Salesforce and Desenio Group 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 Desenio Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Desenio Group.
Diversification Opportunities for Salesforce and Desenio Group
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Salesforce and Desenio is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Desenio Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desenio Group AB 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 Desenio Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desenio Group AB has no effect on the direction of Salesforce i.e., Salesforce and Desenio Group go up and down completely randomly.
Pair Corralation between Salesforce and Desenio Group
Considering the 90-day investment horizon Salesforce is expected to generate 0.14 times more return on investment than Desenio Group. However, Salesforce is 6.9 times less risky than Desenio Group. It trades about 0.32 of its potential returns per unit of risk. Desenio Group AB is currently generating about -0.02 per unit of risk. If you would invest 27,044 in Salesforce on August 25, 2024 and sell it today you would earn a total of 7,158 from holding Salesforce or generate 26.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Desenio Group AB
Performance |
| Timeline |
| Salesforce |
| Desenio Group AB |
Salesforce and Desenio Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Desenio Group
The main advantage of trading using opposite Salesforce and Desenio Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Desenio Group 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 Desenio Group will offset losses from the drop in Desenio Group's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Desenio Group vs. Cint Group AB | Desenio Group vs. Fractal Gaming Group | Desenio Group vs. Pierce Group AB | Desenio Group vs. Lyko Group A |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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