Correlation Between Salesforce and Saint Jean
Can any of the company-specific risk be diversified away by investing in both Salesforce and Saint Jean 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 Saint Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Saint Jean Groupe, you can compare the effects of market volatilities on Salesforce and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Saint Jean.
Diversification Opportunities for Salesforce and Saint Jean
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salesforce and Saint is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Saint Jean Groupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Groupe 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Groupe has no effect on the direction of Salesforce i.e., Salesforce and Saint Jean go up and down completely randomly.
Pair Corralation between Salesforce and Saint Jean
Considering the 90-day investment horizon Salesforce is expected to under-perform the Saint Jean. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 2.05 times less risky than Saint Jean. The stock trades about -0.13 of its potential returns per unit of risk. The Saint Jean Groupe is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,040 in Saint Jean Groupe on October 25, 2024 and sell it today you would earn a total of 60.00 from holding Saint Jean Groupe or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Saint Jean Groupe
Performance |
| Timeline |
| Salesforce |
| Saint Jean Groupe |
Salesforce and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Saint Jean
The main advantage of trading using opposite Salesforce and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Saint Jean vs. Samse SA | Saint Jean vs. Robertet SA | Saint Jean vs. Manitou BF SA | Saint Jean vs. Ossiam Minimum Variance |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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