Correlation Between Salesforce and Mapfre SA
Can any of the company-specific risk be diversified away by investing in both Salesforce and Mapfre SA 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 Mapfre SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Mapfre SA, you can compare the effects of market volatilities on Salesforce and Mapfre SA 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 Mapfre SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Mapfre SA.
Diversification Opportunities for Salesforce and Mapfre SA
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Mapfre is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Mapfre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre SA 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 Mapfre SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre SA has no effect on the direction of Salesforce i.e., Salesforce and Mapfre SA go up and down completely randomly.
Pair Corralation between Salesforce and Mapfre SA
Considering the 90-day investment horizon Salesforce is expected to generate 11.29 times more return on investment than Mapfre SA. However, Salesforce is 11.29 times more volatile than Mapfre SA. It trades about 0.34 of its potential returns per unit of risk. Mapfre SA is currently generating about -0.22 per unit of risk. If you would invest 29,377 in Salesforce on August 28, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Mapfre SA
Performance |
| Timeline |
| Salesforce |
| Mapfre SA |
Salesforce and Mapfre SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Mapfre SA
The main advantage of trading using opposite Salesforce and Mapfre SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Mapfre SA 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 Mapfre SA will offset losses from the drop in Mapfre SA's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Mapfre SA vs. Fundamental Global | Mapfre SA vs. Waterdrop ADR | Mapfre SA vs. Goosehead Insurance | Mapfre SA vs. Old Republic International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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