Correlation Between Salesforce and NEXTERA
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By analyzing existing cross correlation between Salesforce and NEXTERA ENERGY CAPITAL, you can compare the effects of market volatilities on Salesforce and NEXTERA 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 NEXTERA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and NEXTERA.
Diversification Opportunities for Salesforce and NEXTERA
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and NEXTERA is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and NEXTERA ENERGY CAPITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXTERA ENERGY CAPITAL 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 NEXTERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXTERA ENERGY CAPITAL has no effect on the direction of Salesforce i.e., Salesforce and NEXTERA go up and down completely randomly.
Pair Corralation between Salesforce and NEXTERA
Considering the 90-day investment horizon Salesforce is expected to generate 2.18 times more return on investment than NEXTERA. However, Salesforce is 2.18 times more volatile than NEXTERA ENERGY CAPITAL. It trades about 0.39 of its potential returns per unit of risk. NEXTERA ENERGY CAPITAL is currently generating about -0.28 per unit of risk. If you would invest 28,443 in Salesforce on August 24, 2024 and sell it today you would earn a total of 5,135 from holding Salesforce or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. NEXTERA ENERGY CAPITAL
Performance |
| Timeline |
| Salesforce |
| NEXTERA ENERGY CAPITAL |
Salesforce and NEXTERA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and NEXTERA
The main advantage of trading using opposite Salesforce and NEXTERA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, NEXTERA 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 NEXTERA will offset losses from the drop in NEXTERA's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| NEXTERA vs. Western Digital | NEXTERA vs. Stratasys | NEXTERA vs. Reservoir Media | NEXTERA vs. Casio Computer Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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