Correlation Between Salesforce and Vasta Platform
Can any of the company-specific risk be diversified away by investing in both Salesforce and Vasta Platform 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 Vasta Platform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Vasta Platform, you can compare the effects of market volatilities on Salesforce and Vasta Platform 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 Vasta Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Vasta Platform.
Diversification Opportunities for Salesforce and Vasta Platform
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salesforce and Vasta is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Vasta Platform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vasta Platform 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 Vasta Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vasta Platform has no effect on the direction of Salesforce i.e., Salesforce and Vasta Platform go up and down completely randomly.
Pair Corralation between Salesforce and Vasta Platform
Considering the 90-day investment horizon Salesforce is expected to generate 0.91 times more return on investment than Vasta Platform. However, Salesforce is 1.1 times less risky than Vasta Platform. It trades about 0.38 of its potential returns per unit of risk. Vasta Platform is currently generating about -0.11 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 Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Salesforce vs. Vasta Platform
Performance |
| Timeline |
| Salesforce |
| Vasta Platform |
Salesforce and Vasta Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Vasta Platform
The main advantage of trading using opposite Salesforce and Vasta Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Vasta Platform 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 Vasta Platform will offset losses from the drop in Vasta Platform's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Vasta Platform vs. Gaotu Techedu DRC | Vasta Platform vs. TAL Education Group | Vasta Platform vs. Strategic Education | Vasta Platform vs. Afya |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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