Correlation Between Salesforce and Krungthai Card
Can any of the company-specific risk be diversified away by investing in both Salesforce and Krungthai Card 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 Krungthai Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Krungthai Card PCL, you can compare the effects of market volatilities on Salesforce and Krungthai Card 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 Krungthai Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Krungthai Card.
Diversification Opportunities for Salesforce and Krungthai Card
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and Krungthai is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Krungthai Card PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krungthai Card PCL 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 Krungthai Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krungthai Card PCL has no effect on the direction of Salesforce i.e., Salesforce and Krungthai Card go up and down completely randomly.
Pair Corralation between Salesforce and Krungthai Card
Considering the 90-day investment horizon Salesforce is expected to generate 2.02 times more return on investment than Krungthai Card. However, Salesforce is 2.02 times more volatile than Krungthai Card PCL. It trades about 0.34 of its potential returns per unit of risk. Krungthai Card PCL is currently generating about -0.11 per unit of risk. If you would invest 29,377 in Salesforce on August 27, 2024 and sell it today you would earn a total of 4,534 from holding Salesforce or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Krungthai Card PCL
Performance |
| Timeline |
| Salesforce |
| Krungthai Card PCL |
Salesforce and Krungthai Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Krungthai Card
The main advantage of trading using opposite Salesforce and Krungthai Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Krungthai Card 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 Krungthai Card will offset losses from the drop in Krungthai Card's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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