Correlation Between Salesforce and Singapore Exchange
Can any of the company-specific risk be diversified away by investing in both Salesforce and Singapore Exchange 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 Singapore Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Singapore Exchange Limited, you can compare the effects of market volatilities on Salesforce and Singapore Exchange 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 Singapore Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Singapore Exchange.
Diversification Opportunities for Salesforce and Singapore Exchange
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salesforce and Singapore is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Singapore Exchange Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Exchange 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 Singapore Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Exchange has no effect on the direction of Salesforce i.e., Salesforce and Singapore Exchange go up and down completely randomly.
Pair Corralation between Salesforce and Singapore Exchange
Considering the 90-day investment horizon Salesforce is expected to generate 0.85 times more return on investment than Singapore Exchange. However, Salesforce is 1.18 times less risky than Singapore Exchange. It trades about 0.08 of its potential returns per unit of risk. Singapore Exchange Limited is currently generating about 0.04 per unit of risk. If you would invest 19,562 in Salesforce on August 24, 2024 and sell it today you would earn a total of 14,640 from holding Salesforce or generate 74.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.16% |
| Values | Daily Returns |
Salesforce vs. Singapore Exchange Limited
Performance |
| Timeline |
| Salesforce |
| Singapore Exchange |
Salesforce and Singapore Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Singapore Exchange
The main advantage of trading using opposite Salesforce and Singapore Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Singapore Exchange 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 Singapore Exchange will offset losses from the drop in Singapore Exchange's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Singapore Exchange vs. Hong Kong Exchanges | Singapore Exchange vs. Singapore Exchange Ltd | Singapore Exchange vs. Deutsche Brse AG | Singapore Exchange vs. London Stock Exchange |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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