Correlation Between Salesforce and Lion Brewery
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By analyzing existing cross correlation between Salesforce and Lion Brewery Ceylon, you can compare the effects of market volatilities on Salesforce and Lion Brewery 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 Lion Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Lion Brewery.
Diversification Opportunities for Salesforce and Lion Brewery
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Salesforce and Lion is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Lion Brewery Ceylon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Brewery Ceylon 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 Lion Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Brewery Ceylon has no effect on the direction of Salesforce i.e., Salesforce and Lion Brewery go up and down completely randomly.
Pair Corralation between Salesforce and Lion Brewery
Considering the 90-day investment horizon Salesforce is expected to generate 1.42 times more return on investment than Lion Brewery. However, Salesforce is 1.42 times more volatile than Lion Brewery Ceylon. It trades about 0.23 of its potential returns per unit of risk. Lion Brewery Ceylon is currently generating about -0.13 per unit of risk. If you would invest 29,640 in Salesforce on August 31, 2024 and sell it today you would earn a total of 3,361 from holding Salesforce or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Salesforce vs. Lion Brewery Ceylon
Performance |
| Timeline |
| Salesforce |
| Lion Brewery Ceylon |
Salesforce and Lion Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Lion Brewery
The main advantage of trading using opposite Salesforce and Lion Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Lion Brewery 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 Lion Brewery will offset losses from the drop in Lion Brewery's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Lion Brewery vs. HNB Finance | Lion Brewery vs. Prime Lands Residencies | Lion Brewery vs. Jat Holdings PLC | Lion Brewery vs. E M L |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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