Correlation Between Salesforce and Snam SpA
Can any of the company-specific risk be diversified away by investing in both Salesforce and Snam SpA 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 Snam SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Snam SpA, you can compare the effects of market volatilities on Salesforce and Snam SpA 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 Snam SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Snam SpA.
Diversification Opportunities for Salesforce and Snam SpA
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and Snam is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Snam SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snam SpA 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 Snam SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snam SpA has no effect on the direction of Salesforce i.e., Salesforce and Snam SpA go up and down completely randomly.
Pair Corralation between Salesforce and Snam SpA
Considering the 90-day investment horizon Salesforce is expected to generate 1.63 times more return on investment than Snam SpA. However, Salesforce is 1.63 times more volatile than Snam SpA. It trades about 0.04 of its potential returns per unit of risk. Snam SpA is currently generating about 0.01 per unit of risk. If you would invest 18,931 in Salesforce on January 14, 2025 and sell it today you would earn a total of 6,569 from holding Salesforce or generate 34.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.61% |
| Values | Daily Returns |
Salesforce vs. Snam SpA
Performance |
| Timeline |
| Salesforce |
| Snam SpA |
Salesforce and Snam SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Snam SpA
The main advantage of trading using opposite Salesforce and Snam SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Snam SpA 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 Snam SpA will offset losses from the drop in Snam SpA's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Snam SpA vs. Naturgy Energy Group | Snam SpA vs. CenterPoint Energy | Snam SpA vs. ENN Energy Holdings | Snam SpA vs. Atmos Energy |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |