Correlation Between Salesforce and KGI Securities
Can any of the company-specific risk be diversified away by investing in both Salesforce and KGI Securities 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 KGI Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and KGI Securities Public, you can compare the effects of market volatilities on Salesforce and KGI Securities 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 KGI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and KGI Securities.
Diversification Opportunities for Salesforce and KGI Securities
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and KGI is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and KGI Securities Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGI Securities Public 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 KGI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGI Securities Public has no effect on the direction of Salesforce i.e., Salesforce and KGI Securities go up and down completely randomly.
Pair Corralation between Salesforce and KGI Securities
Considering the 90-day investment horizon Salesforce is expected to generate 2.48 times more return on investment than KGI Securities. However, Salesforce is 2.48 times more volatile than KGI Securities Public. It trades about 0.11 of its potential returns per unit of risk. KGI Securities Public is currently generating about 0.0 per unit of risk. If you would invest 12,955 in Salesforce on August 29, 2024 and sell it today you would earn a total of 21,363 from holding Salesforce or generate 164.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Salesforce vs. KGI Securities Public
Performance |
| Timeline |
| Salesforce |
| KGI Securities Public |
Salesforce and KGI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and KGI Securities
The main advantage of trading using opposite Salesforce and KGI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, KGI Securities 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 KGI Securities will offset losses from the drop in KGI Securities' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| KGI Securities vs. AAPICO Hitech Public | KGI Securities vs. Namwiwat Medical | KGI Securities vs. Heng Leasing Capital | KGI Securities vs. INET Leasehold REIT |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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