Correlation Between Salesforce and ALIBABA
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By analyzing existing cross correlation between Salesforce and ALIBABA GROUP HLDG, you can compare the effects of market volatilities on Salesforce and ALIBABA 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 ALIBABA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and ALIBABA.
Diversification Opportunities for Salesforce and ALIBABA
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and ALIBABA is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and ALIBABA GROUP HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIBABA GROUP HLDG 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 ALIBABA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIBABA GROUP HLDG has no effect on the direction of Salesforce i.e., Salesforce and ALIBABA go up and down completely randomly.
Pair Corralation between Salesforce and ALIBABA
Considering the 90-day investment horizon Salesforce is expected to generate 2.14 times more return on investment than ALIBABA. However, Salesforce is 2.14 times more volatile than ALIBABA GROUP HLDG. It trades about 0.35 of its potential returns per unit of risk. ALIBABA GROUP HLDG is currently generating about -0.19 per unit of risk. If you would invest 29,377 in Salesforce on August 28, 2024 and sell it today you would earn a total of 4,941 from holding Salesforce or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Salesforce vs. ALIBABA GROUP HLDG
Performance |
| Timeline |
| Salesforce |
| ALIBABA GROUP HLDG |
Salesforce and ALIBABA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and ALIBABA
The main advantage of trading using opposite Salesforce and ALIBABA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, ALIBABA 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 ALIBABA will offset losses from the drop in ALIBABA's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| ALIBABA vs. AEP TEX INC | ALIBABA vs. US BANK NATIONAL | ALIBABA vs. Omega Healthcare Investors | ALIBABA vs. Zoom Video Communications |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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