Correlation Between Salesforce and Ssga International
Can any of the company-specific risk be diversified away by investing in both Salesforce and Ssga International 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 Ssga International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Ssga International Stock, you can compare the effects of market volatilities on Salesforce and Ssga International 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 Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Ssga International.
Diversification Opportunities for Salesforce and Ssga International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and Ssga is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock 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 Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Salesforce i.e., Salesforce and Ssga International go up and down completely randomly.
Pair Corralation between Salesforce and Ssga International
Considering the 90-day investment horizon Salesforce is expected to generate 2.7 times more return on investment than Ssga International. However, Salesforce is 2.7 times more volatile than Ssga International Stock. It trades about 0.04 of its potential returns per unit of risk. Ssga International Stock is currently generating about 0.04 per unit of risk. If you would invest 29,743 in Salesforce on September 1, 2024 and sell it today you would earn a total of 3,256 from holding Salesforce or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Salesforce vs. Ssga International Stock
Performance |
| Timeline |
| Salesforce |
| Ssga International Stock |
Salesforce and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Ssga International
The main advantage of trading using opposite Salesforce and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Ssga International 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 Ssga International will offset losses from the drop in Ssga International's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Ssga International vs. State Street Target | Ssga International vs. State Street Target | Ssga International vs. Ssga International Stock | Ssga International vs. State Street Target |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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