Correlation Between Salesforce and FEDEX
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By analyzing existing cross correlation between Salesforce and FEDEX P 44, you can compare the effects of market volatilities on Salesforce and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and FEDEX.
Diversification Opportunities for Salesforce and FEDEX
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and FEDEX is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and FEDEX P 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 44 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 44 has no effect on the direction of Salesforce i.e., Salesforce and FEDEX go up and down completely randomly.
Pair Corralation between Salesforce and FEDEX
Considering the 90-day investment horizon Salesforce is expected to generate 0.61 times more return on investment than FEDEX. However, Salesforce is 1.64 times less risky than FEDEX. It trades about 0.16 of its potential returns per unit of risk. FEDEX P 44 is currently generating about 0.02 per unit of risk. If you would invest 23,588 in Salesforce on September 1, 2024 and sell it today you would earn a total of 9,411 from holding Salesforce or generate 39.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Salesforce vs. FEDEX P 44
Performance |
| Timeline |
| Salesforce |
| FEDEX P 44 |
Salesforce and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and FEDEX
The main advantage of trading using opposite Salesforce and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| FEDEX vs. Molson Coors Brewing | FEDEX vs. Ambev SA ADR | FEDEX vs. Elmos Semiconductor SE | FEDEX vs. Analog Devices |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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