Correlation Between Salesforce and Rafina Innovations
Can any of the company-specific risk be diversified away by investing in both Salesforce and Rafina Innovations at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Salesforce and Rafina Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Rafina Innovations, you can compare the effects of market volatilities on Salesforce and Rafina Innovations 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 Rafina Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Rafina Innovations.
Diversification Opportunities for Salesforce and Rafina Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Rafina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Rafina Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rafina Innovations 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 Rafina Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rafina Innovations has no effect on the direction of Salesforce i.e., Salesforce and Rafina Innovations go up and down completely randomly.
Pair Corralation between Salesforce and Rafina Innovations
Considering the 90-day investment horizon Salesforce is expected to generate 33.81 times less return on investment than Rafina Innovations. But when comparing it to its historical volatility, Salesforce is 28.12 times less risky than Rafina Innovations. It trades about 0.04 of its potential returns per unit of risk. Rafina Innovations is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Rafina Innovations on November 3, 2024 and sell it today you would lose (0.14) from holding Rafina Innovations or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Salesforce vs. Rafina Innovations
Performance |
| Timeline |
| Salesforce |
| Rafina Innovations |
Salesforce and Rafina Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Rafina Innovations
The main advantage of trading using opposite Salesforce and Rafina Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Rafina Innovations 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 Rafina Innovations will offset losses from the drop in Rafina Innovations' long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Rafina Innovations vs. LENSAR Inc | Rafina Innovations vs. Sight Sciences | Rafina Innovations vs. STRATA Skin Sciences | Rafina Innovations vs. enVVeno Medical 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets |