Correlation Between Salesforce and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Salesforce and Amundi ETF 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 Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Amundi ETF PEA, you can compare the effects of market volatilities on Salesforce and Amundi ETF 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 Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Amundi ETF.
Diversification Opportunities for Salesforce and Amundi ETF
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salesforce and Amundi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Amundi ETF PEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF PEA 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 Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF PEA has no effect on the direction of Salesforce i.e., Salesforce and Amundi ETF go up and down completely randomly.
Pair Corralation between Salesforce and Amundi ETF
Considering the 90-day investment horizon Salesforce is expected to generate 1.73 times more return on investment than Amundi ETF. However, Salesforce is 1.73 times more volatile than Amundi ETF PEA. It trades about 0.1 of its potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.11 per unit of risk. If you would invest 13,053 in Salesforce on August 30, 2024 and sell it today you would earn a total of 19,948 from holding Salesforce or generate 152.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.22% |
| Values | Daily Returns |
Salesforce vs. Amundi ETF PEA
Performance |
| Timeline |
| Salesforce |
| Amundi ETF PEA |
Salesforce and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Amundi ETF
The main advantage of trading using opposite Salesforce and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Amundi ETF 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Amundi ETF vs. Manitou BF SA | Amundi ETF vs. Ossiam Minimum Variance | Amundi ETF vs. Ekinops SA | Amundi ETF vs. Orapi SA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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