Correlation Between Salesforce and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Salesforce and Eagle Point 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 Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Eagle Point Credit, you can compare the effects of market volatilities on Salesforce and Eagle Point 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 Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Eagle Point.
Diversification Opportunities for Salesforce and Eagle Point
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and Eagle is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit 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 Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Salesforce i.e., Salesforce and Eagle Point go up and down completely randomly.
Pair Corralation between Salesforce and Eagle Point
Considering the 90-day investment horizon Salesforce is expected to generate 2.41 times more return on investment than Eagle Point. However, Salesforce is 2.41 times more volatile than Eagle Point Credit. It trades about 0.23 of its potential returns per unit of risk. Eagle Point Credit is currently generating about -0.15 per unit of risk. If you would invest 29,640 in Salesforce on August 31, 2024 and sell it today you would earn a total of 3,361 from holding Salesforce or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Eagle Point Credit
Performance |
| Timeline |
| Salesforce |
| Eagle Point Credit |
Salesforce and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Eagle Point
The main advantage of trading using opposite Salesforce and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |