Correlation Between Salesforce and Kentucky First
Can any of the company-specific risk be diversified away by investing in both Salesforce and Kentucky First 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 Kentucky First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Kentucky First Federal, you can compare the effects of market volatilities on Salesforce and Kentucky First 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 Kentucky First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Kentucky First.
Diversification Opportunities for Salesforce and Kentucky First
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Kentucky is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Kentucky First Federal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kentucky First Federal 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 Kentucky First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kentucky First Federal has no effect on the direction of Salesforce i.e., Salesforce and Kentucky First go up and down completely randomly.
Pair Corralation between Salesforce and Kentucky First
Considering the 90-day investment horizon Salesforce is expected to generate 0.55 times more return on investment than Kentucky First. However, Salesforce is 1.81 times less risky than Kentucky First. It trades about 0.38 of its potential returns per unit of risk. Kentucky First Federal is currently generating about -0.2 per unit of risk. If you would invest 29,046 in Salesforce on August 26, 2024 and sell it today you would earn a total of 5,156 from holding Salesforce or generate 17.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Kentucky First Federal
Performance |
| Timeline |
| Salesforce |
| Kentucky First Federal |
Salesforce and Kentucky First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Kentucky First
The main advantage of trading using opposite Salesforce and Kentucky First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Kentucky First 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 Kentucky First will offset losses from the drop in Kentucky First's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Kentucky First vs. Home Federal Bancorp | Kentucky First vs. Lake Shore Bancorp | Kentucky First vs. Commerzbank AG | Kentucky First vs. Investar Holding Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |