Correlation Between SALESFORCE INC and Sinopec Kantons
Can any of the company-specific risk be diversified away by investing in both SALESFORCE INC and Sinopec Kantons 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 INC and Sinopec Kantons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SALESFORCE INC CDR and Sinopec Kantons Holdings, you can compare the effects of market volatilities on SALESFORCE INC and Sinopec Kantons 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 INC with a short position of Sinopec Kantons. Check out your portfolio center. Please also check ongoing floating volatility patterns of SALESFORCE INC and Sinopec Kantons.
Diversification Opportunities for SALESFORCE INC and Sinopec Kantons
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SALESFORCE and Sinopec is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SALESFORCE INC CDR and Sinopec Kantons Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopec Kantons Holdings and SALESFORCE INC 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 INC CDR are associated (or correlated) with Sinopec Kantons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopec Kantons Holdings has no effect on the direction of SALESFORCE INC i.e., SALESFORCE INC and Sinopec Kantons go up and down completely randomly.
Pair Corralation between SALESFORCE INC and Sinopec Kantons
Assuming the 90 days trading horizon SALESFORCE INC is expected to generate 4.16 times less return on investment than Sinopec Kantons. But when comparing it to its historical volatility, SALESFORCE INC CDR is 1.14 times less risky than Sinopec Kantons. It trades about 0.03 of its potential returns per unit of risk. Sinopec Kantons Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Sinopec Kantons Holdings on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Sinopec Kantons Holdings or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SALESFORCE INC CDR vs. Sinopec Kantons Holdings
Performance |
| Timeline |
| SALESFORCE INC CDR |
| Sinopec Kantons Holdings |
SALESFORCE INC and Sinopec Kantons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SALESFORCE INC and Sinopec Kantons
The main advantage of trading using opposite SALESFORCE INC and Sinopec Kantons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SALESFORCE INC position performs unexpectedly, Sinopec Kantons 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 Sinopec Kantons will offset losses from the drop in Sinopec Kantons' long position.| SALESFORCE INC vs. HYDROFARM HLD GRP | SALESFORCE INC vs. Entravision Communications | SALESFORCE INC vs. Singapore Telecommunications Limited | SALESFORCE INC vs. Computer And Technologies |
| Sinopec Kantons vs. Fukuyama Transporting Co | Sinopec Kantons vs. Salesforce | Sinopec Kantons vs. SALESFORCE INC CDR | Sinopec Kantons vs. Carsales |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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