Correlation Between Salesforce and AMGEN
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By analyzing existing cross correlation between Salesforce and AMGEN INC 515, you can compare the effects of market volatilities on Salesforce and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and AMGEN.
Diversification Opportunities for Salesforce and AMGEN
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and AMGEN is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and AMGEN INC 515 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 515 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 515 has no effect on the direction of Salesforce i.e., Salesforce and AMGEN go up and down completely randomly.
Pair Corralation between Salesforce and AMGEN
Considering the 90-day investment horizon Salesforce is expected to generate 1.38 times more return on investment than AMGEN. However, Salesforce is 1.38 times more volatile than AMGEN INC 515. It trades about 0.28 of its potential returns per unit of risk. AMGEN INC 515 is currently generating about 0.08 per unit of risk. If you would invest 29,137 in Salesforce on September 1, 2024 and sell it today you would earn a total of 3,862 from holding Salesforce or generate 13.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Salesforce vs. AMGEN INC 515
Performance |
| Timeline |
| Salesforce |
| AMGEN INC 515 |
Salesforce and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and AMGEN
The main advantage of trading using opposite Salesforce and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
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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