Correlation Between Salesforce and SIKA AG
Can any of the company-specific risk be diversified away by investing in both Salesforce and SIKA AG 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 SIKA AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and SIKA AG UNSPADR, you can compare the effects of market volatilities on Salesforce and SIKA AG 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 SIKA AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and SIKA AG.
Diversification Opportunities for Salesforce and SIKA AG
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and SIKA is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and SIKA AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIKA AG UNSPADR 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 SIKA AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIKA AG UNSPADR has no effect on the direction of Salesforce i.e., Salesforce and SIKA AG go up and down completely randomly.
Pair Corralation between Salesforce and SIKA AG
Considering the 90-day investment horizon Salesforce is expected to generate 1.36 times more return on investment than SIKA AG. However, Salesforce is 1.36 times more volatile than SIKA AG UNSPADR. It trades about 0.04 of its potential returns per unit of risk. SIKA AG UNSPADR is currently generating about -0.03 per unit of risk. If you would invest 29,788 in Salesforce on November 7, 2024 and sell it today you would earn a total of 4,626 from holding Salesforce or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.56% |
| Values | Daily Returns |
Salesforce vs. SIKA AG UNSPADR
Performance |
| Timeline |
| Salesforce |
| SIKA AG UNSPADR |
Salesforce and SIKA AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and SIKA AG
The main advantage of trading using opposite Salesforce and SIKA AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, SIKA AG 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 SIKA AG will offset losses from the drop in SIKA AG's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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