Correlation Between Salesforce and Engie SA
Can any of the company-specific risk be diversified away by investing in both Salesforce and Engie SA 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 Engie SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Engie SA, you can compare the effects of market volatilities on Salesforce and Engie SA 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 Engie SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Engie SA.
Diversification Opportunities for Salesforce and Engie SA
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Engie is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Engie SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engie SA 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 Engie SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engie SA has no effect on the direction of Salesforce i.e., Salesforce and Engie SA go up and down completely randomly.
Pair Corralation between Salesforce and Engie SA
Considering the 90-day investment horizon Salesforce is expected to generate 1.65 times more return on investment than Engie SA. However, Salesforce is 1.65 times more volatile than Engie SA. It trades about 0.1 of its potential returns per unit of risk. Engie SA is currently generating about 0.04 per unit of risk. If you would invest 13,502 in Salesforce on September 3, 2024 and sell it today you would earn a total of 19,497 from holding Salesforce or generate 144.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Salesforce vs. Engie SA
Performance |
| Timeline |
| Salesforce |
| Engie SA |
Salesforce and Engie SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Engie SA
The main advantage of trading using opposite Salesforce and Engie SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Engie SA 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 Engie SA will offset losses from the drop in Engie SA'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |