Correlation Between Salesforce and Peloton Minerals
Can any of the company-specific risk be diversified away by investing in both Salesforce and Peloton Minerals 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 Peloton Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Peloton Minerals, you can compare the effects of market volatilities on Salesforce and Peloton Minerals 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 Peloton Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Peloton Minerals.
Diversification Opportunities for Salesforce and Peloton Minerals
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Peloton is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Peloton Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peloton Minerals 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 Peloton Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peloton Minerals has no effect on the direction of Salesforce i.e., Salesforce and Peloton Minerals go up and down completely randomly.
Pair Corralation between Salesforce and Peloton Minerals
Considering the 90-day investment horizon Salesforce is expected to generate 0.19 times more return on investment than Peloton Minerals. However, Salesforce is 5.34 times less risky than Peloton Minerals. It trades about 0.31 of its potential returns per unit of risk. Peloton Minerals is currently generating about 0.04 per unit of risk. If you would invest 27,371 in Salesforce on August 29, 2024 and sell it today you would earn a total of 6,947 from holding Salesforce or generate 25.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Salesforce vs. Peloton Minerals
Performance |
| Timeline |
| Salesforce |
| Peloton Minerals |
Salesforce and Peloton Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Peloton Minerals
The main advantage of trading using opposite Salesforce and Peloton Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Peloton Minerals 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 Peloton Minerals will offset losses from the drop in Peloton Minerals' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Peloton Minerals vs. BTU Metals Corp | Peloton Minerals vs. Gold Springs Resource | Peloton Minerals vs. Norsemont Mining | Peloton Minerals vs. FireFox Gold Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |