Correlation Between Salesforce and Raketech Group
Can any of the company-specific risk be diversified away by investing in both Salesforce and Raketech Group 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 Raketech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Raketech Group Holding, you can compare the effects of market volatilities on Salesforce and Raketech Group 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 Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Raketech Group.
Diversification Opportunities for Salesforce and Raketech Group
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and Raketech is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding 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 Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of Salesforce i.e., Salesforce and Raketech Group go up and down completely randomly.
Pair Corralation between Salesforce and Raketech Group
Considering the 90-day investment horizon Salesforce is expected to generate 0.84 times more return on investment than Raketech Group. However, Salesforce is 1.19 times less risky than Raketech Group. It trades about 0.08 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.12 per unit of risk. If you would invest 16,610 in Salesforce on November 1, 2024 and sell it today you would earn a total of 17,872 from holding Salesforce or generate 107.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Salesforce vs. Raketech Group Holding
Performance |
| Timeline |
| Salesforce |
| Raketech Group Holding |
Salesforce and Raketech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Raketech Group
The main advantage of trading using opposite Salesforce and Raketech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Raketech Group 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 Raketech Group will offset losses from the drop in Raketech Group's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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