Correlation Between Salesforce and MONA
Can any of the company-specific risk be diversified away by investing in both Salesforce and MONA 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 MONA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and MONA, you can compare the effects of market volatilities on Salesforce and MONA 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 MONA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and MONA.
Diversification Opportunities for Salesforce and MONA
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Salesforce and MONA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and MONA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MONA 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 MONA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MONA has no effect on the direction of Salesforce i.e., Salesforce and MONA go up and down completely randomly.
Pair Corralation between Salesforce and MONA
Considering the 90-day investment horizon Salesforce is expected to under-perform the MONA. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 2.49 times less risky than MONA. The stock trades about -0.31 of its potential returns per unit of risk. The MONA is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 26.00 in MONA on November 27, 2024 and sell it today you would lose (2.00) from holding MONA or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Salesforce vs. MONA
Performance |
| Timeline |
| Salesforce |
| MONA |
Salesforce and MONA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and MONA
The main advantage of trading using opposite Salesforce and MONA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, MONA 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 MONA will offset losses from the drop in MONA'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |