Correlation Between Salesforce and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Salesforce and Mainstay Epoch 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 Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Mainstay Epoch Global, you can compare the effects of market volatilities on Salesforce and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Mainstay Epoch.
Diversification Opportunities for Salesforce and Mainstay Epoch
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Salesforce and Mainstay is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Salesforce i.e., Salesforce and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Salesforce and Mainstay Epoch
Considering the 90-day investment horizon Salesforce is expected to generate 4.53 times more return on investment than Mainstay Epoch. However, Salesforce is 4.53 times more volatile than Mainstay Epoch Global. It trades about 0.28 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.22 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 Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Salesforce vs. Mainstay Epoch Global
Performance |
| Timeline |
| Salesforce |
| Mainstay Epoch Global |
Salesforce and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Mainstay Epoch
The main advantage of trading using opposite Salesforce and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | Mainstay Epoch vs. Mainstay Large Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |