Correlation Between Salesforce and Presto Automation
Can any of the company-specific risk be diversified away by investing in both Salesforce and Presto Automation 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 Presto Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Presto Automation, you can compare the effects of market volatilities on Salesforce and Presto Automation 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 Presto Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Presto Automation.
Diversification Opportunities for Salesforce and Presto Automation
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Presto is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Presto Automation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presto Automation 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 Presto Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presto Automation has no effect on the direction of Salesforce i.e., Salesforce and Presto Automation go up and down completely randomly.
Pair Corralation between Salesforce and Presto Automation
Considering the 90-day investment horizon Salesforce is expected to generate 0.15 times more return on investment than Presto Automation. However, Salesforce is 6.84 times less risky than Presto Automation. It trades about 0.07 of its potential returns per unit of risk. Presto Automation is currently generating about -0.08 per unit of risk. If you would invest 20,860 in Salesforce on August 31, 2024 and sell it today you would earn a total of 12,139 from holding Salesforce or generate 58.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 79.68% |
| Values | Daily Returns |
Salesforce vs. Presto Automation
Performance |
| Timeline |
| Salesforce |
| Presto Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and Presto Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Presto Automation
The main advantage of trading using opposite Salesforce and Presto Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Presto Automation 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 Presto Automation will offset losses from the drop in Presto Automation's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Presto Automation vs. CXApp Inc | Presto Automation vs. Bullfrog AI Holdings, | Presto Automation vs. Guardforce AI Co | Presto Automation vs. Dermata Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |