Correlation Between Salesforce and Lizhi
Can any of the company-specific risk be diversified away by investing in both Salesforce and Lizhi 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 Lizhi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Lizhi Inc, you can compare the effects of market volatilities on Salesforce and Lizhi 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 Lizhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Lizhi.
Diversification Opportunities for Salesforce and Lizhi
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and Lizhi is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Lizhi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lizhi Inc 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 Lizhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lizhi Inc has no effect on the direction of Salesforce i.e., Salesforce and Lizhi go up and down completely randomly.
Pair Corralation between Salesforce and Lizhi
If you would invest 29,377 in Salesforce on August 27, 2024 and sell it today you would earn a total of 4,825 from holding Salesforce or generate 16.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Salesforce vs. Lizhi Inc
Performance |
| Timeline |
| Salesforce |
| Lizhi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and Lizhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Lizhi
The main advantage of trading using opposite Salesforce and Lizhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Lizhi 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 Lizhi will offset losses from the drop in Lizhi's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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