Correlation Between Salesforce and Virtus InfraCap
Can any of the company-specific risk be diversified away by investing in both Salesforce and Virtus InfraCap 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 Virtus InfraCap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Virtus InfraCap Preferred, you can compare the effects of market volatilities on Salesforce and Virtus InfraCap 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 Virtus InfraCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Virtus InfraCap.
Diversification Opportunities for Salesforce and Virtus InfraCap
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Virtus is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Virtus InfraCap Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus InfraCap Preferred 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 Virtus InfraCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus InfraCap Preferred has no effect on the direction of Salesforce i.e., Salesforce and Virtus InfraCap go up and down completely randomly.
Pair Corralation between Salesforce and Virtus InfraCap
Considering the 90-day investment horizon Salesforce is expected to under-perform the Virtus InfraCap. In addition to that, Salesforce is 2.0 times more volatile than Virtus InfraCap Preferred. It trades about -0.17 of its total potential returns per unit of risk. Virtus InfraCap Preferred is currently generating about -0.25 per unit of volatility. If you would invest 2,166 in Virtus InfraCap Preferred on January 18, 2025 and sell it today you would lose (171.00) from holding Virtus InfraCap Preferred or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Salesforce vs. Virtus InfraCap Preferred
Performance |
| Timeline |
| Salesforce |
| Virtus InfraCap Preferred |
Salesforce and Virtus InfraCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Virtus InfraCap
The main advantage of trading using opposite Salesforce and Virtus InfraCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Virtus InfraCap 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 Virtus InfraCap will offset losses from the drop in Virtus InfraCap's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify Class A | Salesforce vs. Workday |
| Virtus InfraCap vs. ETFis Series Trust | Virtus InfraCap vs. XAI Octagon Floating | Virtus InfraCap vs. InfraCap MLP ETF | Virtus InfraCap vs. VanEck BDC Income |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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