Correlation Between Salesforce and Consumer Staples
Can any of the company-specific risk be diversified away by investing in both Salesforce and Consumer Staples 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 Consumer Staples into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Consumer Staples Portfolio, you can compare the effects of market volatilities on Salesforce and Consumer Staples 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 Consumer Staples. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Consumer Staples.
Diversification Opportunities for Salesforce and Consumer Staples
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and Consumer is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Consumer Staples Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Staples Por 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 Consumer Staples. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Staples Por has no effect on the direction of Salesforce i.e., Salesforce and Consumer Staples go up and down completely randomly.
Pair Corralation between Salesforce and Consumer Staples
Considering the 90-day investment horizon Salesforce is expected to generate 3.41 times more return on investment than Consumer Staples. However, Salesforce is 3.41 times more volatile than Consumer Staples Portfolio. It trades about 0.28 of its potential returns per unit of risk. Consumer Staples Portfolio is currently generating about 0.26 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Consumer Staples Portfolio
Performance |
| Timeline |
| Salesforce |
| Consumer Staples Por |
Salesforce and Consumer Staples Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Consumer Staples
The main advantage of trading using opposite Salesforce and Consumer Staples positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Consumer Staples 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 Consumer Staples will offset losses from the drop in Consumer Staples' long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Consumer Staples vs. Fidelity Advisor Health | Consumer Staples vs. Fidelity Advisor New | Consumer Staples vs. Fidelity Advisor Technology | Consumer Staples vs. Consumer Staples Portfolio |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |