Correlation Between Salesforce and Entergy New
Can any of the company-specific risk be diversified away by investing in both Salesforce and Entergy New 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 Entergy New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Entergy New Orleans, you can compare the effects of market volatilities on Salesforce and Entergy New 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 Entergy New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Entergy New.
Diversification Opportunities for Salesforce and Entergy New
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and Entergy is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Entergy New Orleans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entergy New Orleans 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 Entergy New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entergy New Orleans has no effect on the direction of Salesforce i.e., Salesforce and Entergy New go up and down completely randomly.
Pair Corralation between Salesforce and Entergy New
Considering the 90-day investment horizon Salesforce is expected to under-perform the Entergy New. In addition to that, Salesforce is 4.31 times more volatile than Entergy New Orleans. It trades about -0.13 of its total potential returns per unit of risk. Entergy New Orleans is currently generating about -0.14 per unit of volatility. If you would invest 2,225 in Entergy New Orleans on January 15, 2025 and sell it today you would lose (46.00) from holding Entergy New Orleans or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Entergy New Orleans
Performance |
| Timeline |
| Salesforce |
| Entergy New Orleans |
Salesforce and Entergy New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Entergy New
The main advantage of trading using opposite Salesforce and Entergy New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Entergy New 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 Entergy New will offset losses from the drop in Entergy New's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify Class A | Salesforce vs. Workday |
| Entergy New vs. Entergy Arkansas LLC | Entergy New vs. Entergy New Orleans | Entergy New vs. Entergy Mississippi LLC | Entergy New vs. Southern Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |