Correlation Between Salesforce and Impedimed
Can any of the company-specific risk be diversified away by investing in both Salesforce and Impedimed 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 Impedimed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Impedimed, you can compare the effects of market volatilities on Salesforce and Impedimed 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 Impedimed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Impedimed.
Diversification Opportunities for Salesforce and Impedimed
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salesforce and Impedimed is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Impedimed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impedimed 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 Impedimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impedimed has no effect on the direction of Salesforce i.e., Salesforce and Impedimed go up and down completely randomly.
Pair Corralation between Salesforce and Impedimed
Considering the 90-day investment horizon Salesforce is expected to generate 0.45 times more return on investment than Impedimed. However, Salesforce is 2.22 times less risky than Impedimed. It trades about 0.17 of its potential returns per unit of risk. Impedimed is currently generating about -0.06 per unit of risk. If you would invest 23,371 in Salesforce on August 29, 2024 and sell it today you would earn a total of 9,630 from holding Salesforce or generate 41.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Salesforce vs. Impedimed
Performance |
| Timeline |
| Salesforce |
| Impedimed |
Salesforce and Impedimed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Impedimed
The main advantage of trading using opposite Salesforce and Impedimed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Impedimed 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 Impedimed will offset losses from the drop in Impedimed's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Impedimed vs. Westpac Banking | Impedimed vs. Champion Iron | Impedimed vs. Ridley | Impedimed vs. Peel Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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