Correlation Between Salesforce and Haoxi Health
Can any of the company-specific risk be diversified away by investing in both Salesforce and Haoxi Health 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 Haoxi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Haoxi Health Technology, you can compare the effects of market volatilities on Salesforce and Haoxi Health 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 Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Haoxi Health.
Diversification Opportunities for Salesforce and Haoxi Health
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and Haoxi is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Salesforce i.e., Salesforce and Haoxi Health go up and down completely randomly.
Pair Corralation between Salesforce and Haoxi Health
Considering the 90-day investment horizon Salesforce is expected to generate 0.13 times more return on investment than Haoxi Health. However, Salesforce is 7.87 times less risky than Haoxi Health. It trades about 0.25 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.25 per unit of risk. If you would invest 25,250 in Salesforce on August 30, 2024 and sell it today you would earn a total of 7,751 from holding Salesforce or generate 30.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Haoxi Health Technology
Performance |
| Timeline |
| Salesforce |
| Haoxi Health Technology |
Salesforce and Haoxi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Haoxi Health
The main advantage of trading using opposite Salesforce and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health'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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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