Correlation Between Salesforce and Global X
Can any of the company-specific risk be diversified away by investing in both Salesforce and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Global X Electrification, you can compare the effects of market volatilities on Salesforce and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Global X.
Diversification Opportunities for Salesforce and Global X
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salesforce and Global is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Global X Electrification in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Electrification 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Electrification has no effect on the direction of Salesforce i.e., Salesforce and Global X go up and down completely randomly.
Pair Corralation between Salesforce and Global X
Considering the 90-day investment horizon Salesforce is expected to generate 1.08 times more return on investment than Global X. However, Salesforce is 1.08 times more volatile than Global X Electrification. It trades about 0.19 of its potential returns per unit of risk. Global X Electrification is currently generating about 0.05 per unit of risk. If you would invest 33,433 in Salesforce on November 1, 2024 and sell it today you would earn a total of 1,967 from holding Salesforce or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Global X Electrification
Performance |
| Timeline |
| Salesforce |
| Global X Electrification |
Salesforce and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Global X
The main advantage of trading using opposite Salesforce and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Global X vs. Vanguard Total Stock | Global X vs. SPDR SP 500 | Global X vs. iShares Core SP | Global X vs. Vanguard Total Bond |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |