Correlation Between Salesforce and Siam City
Can any of the company-specific risk be diversified away by investing in both Salesforce and Siam City 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 Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Siam City Cement, you can compare the effects of market volatilities on Salesforce and Siam City 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 Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Siam City.
Diversification Opportunities for Salesforce and Siam City
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Siam is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Siam City Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam City Cement 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 Siam City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam City Cement has no effect on the direction of Salesforce i.e., Salesforce and Siam City go up and down completely randomly.
Pair Corralation between Salesforce and Siam City
Considering the 90-day investment horizon Salesforce is expected to generate 2.79 times more return on investment than Siam City. However, Salesforce is 2.79 times more volatile than Siam City Cement. It trades about 0.1 of its potential returns per unit of risk. Siam City Cement is currently generating about -0.06 per unit of risk. If you would invest 33,066 in Salesforce on November 3, 2024 and sell it today you would earn a total of 1,104 from holding Salesforce or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Salesforce vs. Siam City Cement
Performance |
| Timeline |
| Salesforce |
| Siam City Cement |
Salesforce and Siam City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Siam City
The main advantage of trading using opposite Salesforce and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Siam City 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 Siam City will offset losses from the drop in Siam City's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Siam City vs. The Siam Cement | Siam City vs. SCB X Public | Siam City vs. Bangkok Bank Public | Siam City vs. PTT Public |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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