Correlation Between Salesforce and FTX Token
Can any of the company-specific risk be diversified away by investing in both Salesforce and FTX Token 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 FTX Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and FTX Token, you can compare the effects of market volatilities on Salesforce and FTX Token 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 FTX Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and FTX Token.
Diversification Opportunities for Salesforce and FTX Token
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and FTX is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and FTX Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTX Token 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 FTX Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTX Token has no effect on the direction of Salesforce i.e., Salesforce and FTX Token go up and down completely randomly.
Pair Corralation between Salesforce and FTX Token
Considering the 90-day investment horizon Salesforce is expected to generate 2.85 times less return on investment than FTX Token. But when comparing it to its historical volatility, Salesforce is 4.74 times less risky than FTX Token. It trades about 0.1 of its potential returns per unit of risk. FTX Token is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 139.00 in FTX Token on August 27, 2024 and sell it today you would earn a total of 123.00 from holding FTX Token or generate 88.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.28% |
| Values | Daily Returns |
Salesforce vs. FTX Token
Performance |
| Timeline |
| Salesforce |
| FTX Token |
Salesforce and FTX Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and FTX Token
The main advantage of trading using opposite Salesforce and FTX Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, FTX Token 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 FTX Token will offset losses from the drop in FTX Token's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |