Correlation Between Salesforce and Fatfish Group
Can any of the company-specific risk be diversified away by investing in both Salesforce and Fatfish 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 Fatfish Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Fatfish Group Limited, you can compare the effects of market volatilities on Salesforce and Fatfish 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 Fatfish Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Fatfish Group.
Diversification Opportunities for Salesforce and Fatfish Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Fatfish is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Fatfish Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fatfish Group Limited 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 Fatfish Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fatfish Group Limited has no effect on the direction of Salesforce i.e., Salesforce and Fatfish Group go up and down completely randomly.
Pair Corralation between Salesforce and Fatfish Group
Considering the 90-day investment horizon Salesforce is expected to generate 3.66 times less return on investment than Fatfish Group. But when comparing it to its historical volatility, Salesforce is 4.95 times less risky than Fatfish Group. It trades about 0.06 of its potential returns per unit of risk. Fatfish Group Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.89 in Fatfish Group Limited on December 1, 2024 and sell it today you would earn a total of 0.65 from holding Fatfish Group Limited or generate 73.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
Salesforce vs. Fatfish Group Limited
Performance |
| Timeline |
| Salesforce |
| Fatfish Group Limited |
Salesforce and Fatfish Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Fatfish Group
The main advantage of trading using opposite Salesforce and Fatfish Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Fatfish 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 Fatfish Group will offset losses from the drop in Fatfish Group's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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