Correlation Between Salesforce and NeoMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Salesforce and NeoMedia Technologies 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 NeoMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and NeoMedia Technologies, you can compare the effects of market volatilities on Salesforce and NeoMedia Technologies 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 NeoMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and NeoMedia Technologies.
Diversification Opportunities for Salesforce and NeoMedia Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and NeoMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and NeoMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeoMedia Technologies 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 NeoMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeoMedia Technologies has no effect on the direction of Salesforce i.e., Salesforce and NeoMedia Technologies go up and down completely randomly.
Pair Corralation between Salesforce and NeoMedia Technologies
If you would invest 28,724 in Salesforce on November 3, 2024 and sell it today you would earn a total of 5,446 from holding Salesforce or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Salesforce vs. NeoMedia Technologies
Performance |
| Timeline |
| Salesforce |
| NeoMedia Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and NeoMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and NeoMedia Technologies
The main advantage of trading using opposite Salesforce and NeoMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, NeoMedia Technologies 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 NeoMedia Technologies will offset losses from the drop in NeoMedia Technologies' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| NeoMedia Technologies vs. AB International Group | NeoMedia Technologies vs. Peer To Peer | NeoMedia Technologies vs. AppYea Inc | NeoMedia Technologies vs. BASE Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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