Correlation Between Salesforce and LOEWS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Salesforce and LOEWS P 6, you can compare the effects of market volatilities on Salesforce and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and LOEWS.
Diversification Opportunities for Salesforce and LOEWS
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and LOEWS is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and LOEWS P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 6 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 6 has no effect on the direction of Salesforce i.e., Salesforce and LOEWS go up and down completely randomly.
Pair Corralation between Salesforce and LOEWS
Considering the 90-day investment horizon Salesforce is expected to generate 2.18 times more return on investment than LOEWS. However, Salesforce is 2.18 times more volatile than LOEWS P 6. It trades about 0.08 of its potential returns per unit of risk. LOEWS P 6 is currently generating about 0.02 per unit of risk. If you would invest 21,953 in Salesforce on August 26, 2024 and sell it today you would earn a total of 12,249 from holding Salesforce or generate 55.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.68% |
| Values | Daily Returns |
Salesforce vs. LOEWS P 6
Performance |
| Timeline |
| Salesforce |
| LOEWS P 6 |
Salesforce and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and LOEWS
The main advantage of trading using opposite Salesforce and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| LOEWS vs. AEP TEX INC | LOEWS vs. US BANK NATIONAL | LOEWS vs. Eat Beyond Global | LOEWS 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges |