Correlation Between Salesforce and SSAB AB
Can any of the company-specific risk be diversified away by investing in both Salesforce and SSAB AB 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 SSAB AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and SSAB AB, you can compare the effects of market volatilities on Salesforce and SSAB AB 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 SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and SSAB AB.
Diversification Opportunities for Salesforce and SSAB AB
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and SSAB is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and SSAB AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB 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 SSAB AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAB AB has no effect on the direction of Salesforce i.e., Salesforce and SSAB AB go up and down completely randomly.
Pair Corralation between Salesforce and SSAB AB
Considering the 90-day investment horizon Salesforce is expected to generate 1.02 times more return on investment than SSAB AB. However, Salesforce is 1.02 times more volatile than SSAB AB. It trades about 0.08 of its potential returns per unit of risk. SSAB AB is currently generating about 0.0 per unit of risk. If you would invest 16,902 in Salesforce on November 5, 2024 and sell it today you would earn a total of 17,268 from holding Salesforce or generate 102.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. SSAB AB
Performance |
| Timeline |
| Salesforce |
| SSAB AB |
Salesforce and SSAB AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and SSAB AB
The main advantage of trading using opposite Salesforce and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, SSAB AB 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 SSAB AB will offset losses from the drop in SSAB AB's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| SSAB AB vs. Boliden AB | SSAB AB vs. SSAB AB | SSAB AB vs. Tele2 AB | SSAB AB vs. Samhllsbyggnadsbolaget i Norden |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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