Correlation Between Salesforce and GENERAL
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By analyzing existing cross correlation between Salesforce and GENERAL ELEC CAP, you can compare the effects of market volatilities on Salesforce and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and GENERAL.
Diversification Opportunities for Salesforce and GENERAL
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salesforce and GENERAL is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Salesforce i.e., Salesforce and GENERAL go up and down completely randomly.
Pair Corralation between Salesforce and GENERAL
Considering the 90-day investment horizon Salesforce is expected to generate 1.35 times more return on investment than GENERAL. However, Salesforce is 1.35 times more volatile than GENERAL ELEC CAP. It trades about 0.34 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.16 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 4,534 from holding Salesforce or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Salesforce vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Salesforce |
| GENERAL ELEC CAP |
Salesforce and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and GENERAL
The main advantage of trading using opposite Salesforce and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| GENERAL vs. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. Eat Beyond Global | GENERAL vs. Charles Schwab Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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