Correlation Between Salesforce and FSA
Can any of the company-specific risk be diversified away by investing in both Salesforce and FSA 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 FSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and FSA Group, you can compare the effects of market volatilities on Salesforce and FSA 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 FSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and FSA.
Diversification Opportunities for Salesforce and FSA
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salesforce and FSA is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and FSA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSA Group 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 FSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSA Group has no effect on the direction of Salesforce i.e., Salesforce and FSA go up and down completely randomly.
Pair Corralation between Salesforce and FSA
Considering the 90-day investment horizon Salesforce is expected to generate 1.46 times more return on investment than FSA. However, Salesforce is 1.46 times more volatile than FSA Group. It trades about 0.08 of its potential returns per unit of risk. FSA Group is currently generating about -0.01 per unit of risk. If you would invest 17,013 in Salesforce on November 2, 2024 and sell it today you would earn a total of 18,387 from holding Salesforce or generate 108.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Salesforce vs. FSA Group
Performance |
| Timeline |
| Salesforce |
| FSA Group |
Salesforce and FSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and FSA
The main advantage of trading using opposite Salesforce and FSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, FSA 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 FSA will offset losses from the drop in FSA'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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