Correlation Between Salesforce and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both Salesforce and Hyliion Holdings 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 Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Hyliion Holdings Corp, you can compare the effects of market volatilities on Salesforce and Hyliion Holdings 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 Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Hyliion Holdings.
Diversification Opportunities for Salesforce and Hyliion Holdings
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salesforce and Hyliion is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp 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 Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of Salesforce i.e., Salesforce and Hyliion Holdings go up and down completely randomly.
Pair Corralation between Salesforce and Hyliion Holdings
Considering the 90-day investment horizon Salesforce is expected to generate 0.41 times more return on investment than Hyliion Holdings. However, Salesforce is 2.46 times less risky than Hyliion Holdings. It trades about 0.02 of its potential returns per unit of risk. Hyliion Holdings Corp is currently generating about -0.06 per unit of risk. If you would invest 32,188 in Salesforce on November 18, 2024 and sell it today you would earn a total of 466.00 from holding Salesforce or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Hyliion Holdings Corp
Performance |
| Timeline |
| Salesforce |
| Hyliion Holdings Corp |
Salesforce and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Hyliion Holdings
The main advantage of trading using opposite Salesforce and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Hyliion Holdings 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 Hyliion Holdings will offset losses from the drop in Hyliion Holdings' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies, Common |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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