Correlation Between Salesforce and Nafoods Group
Can any of the company-specific risk be diversified away by investing in both Salesforce and Nafoods Group 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 Nafoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Nafoods Group JSC, you can compare the effects of market volatilities on Salesforce and Nafoods Group 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 Nafoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Nafoods Group.
Diversification Opportunities for Salesforce and Nafoods Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Nafoods is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Nafoods Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafoods Group JSC 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 Nafoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafoods Group JSC has no effect on the direction of Salesforce i.e., Salesforce and Nafoods Group go up and down completely randomly.
Pair Corralation between Salesforce and Nafoods Group
Considering the 90-day investment horizon Salesforce is expected to generate 2.7 times less return on investment than Nafoods Group. But when comparing it to its historical volatility, Salesforce is 1.08 times less risky than Nafoods Group. It trades about 0.04 of its potential returns per unit of risk. Nafoods Group JSC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,400,000 in Nafoods Group JSC on September 1, 2024 and sell it today you would earn a total of 615,000 from holding Nafoods Group JSC or generate 43.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Nafoods Group JSC
Performance |
| Timeline |
| Salesforce |
| Nafoods Group JSC |
Salesforce and Nafoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Nafoods Group
The main advantage of trading using opposite Salesforce and Nafoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Nafoods Group 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 Nafoods Group will offset losses from the drop in Nafoods Group's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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