Correlation Between Salesforce and Konica Minolta
Can any of the company-specific risk be diversified away by investing in both Salesforce and Konica Minolta 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 Konica Minolta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Konica Minolta, you can compare the effects of market volatilities on Salesforce and Konica Minolta 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 Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Konica Minolta.
Diversification Opportunities for Salesforce and Konica Minolta
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and Konica is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta 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 Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of Salesforce i.e., Salesforce and Konica Minolta go up and down completely randomly.
Pair Corralation between Salesforce and Konica Minolta
Considering the 90-day investment horizon Salesforce is expected to generate 0.78 times more return on investment than Konica Minolta. However, Salesforce is 1.29 times less risky than Konica Minolta. It trades about 0.18 of its potential returns per unit of risk. Konica Minolta is currently generating about 0.12 per unit of risk. If you would invest 24,739 in Salesforce on November 2, 2024 and sell it today you would earn a total of 10,661 from holding Salesforce or generate 43.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Konica Minolta
Performance |
| Timeline |
| Salesforce |
| Konica Minolta |
Salesforce and Konica Minolta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Konica Minolta
The main advantage of trading using opposite Salesforce and Konica Minolta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Konica Minolta 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 Konica Minolta will offset losses from the drop in Konica Minolta's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Konica Minolta vs. Ricoh Company | Konica Minolta vs. Kawasaki Heavy Industries | Konica Minolta vs. Kajima Corp ADR | Konica Minolta vs. Nitto Denko 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |