Correlation Between Lytus Technologies and Salesforce
Can any of the company-specific risk be diversified away by investing in both Lytus Technologies and Salesforce 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 Lytus Technologies and Salesforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lytus Technologies Holdings and Salesforce, you can compare the effects of market volatilities on Lytus Technologies and Salesforce 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 Lytus Technologies with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lytus Technologies and Salesforce.
Diversification Opportunities for Lytus Technologies and Salesforce
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lytus and Salesforce is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lytus Technologies Holdings and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce and Lytus Technologies 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 Lytus Technologies Holdings are associated (or correlated) with Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce has no effect on the direction of Lytus Technologies i.e., Lytus Technologies and Salesforce go up and down completely randomly.
Pair Corralation between Lytus Technologies and Salesforce
Considering the 90-day investment horizon Lytus Technologies is expected to generate 1.1 times less return on investment than Salesforce. In addition to that, Lytus Technologies is 4.6 times more volatile than Salesforce. It trades about 0.05 of its total potential returns per unit of risk. Salesforce is currently generating about 0.24 per unit of volatility. If you would invest 23,864 in Salesforce on September 4, 2024 and sell it today you would earn a total of 9,237 from holding Salesforce or generate 38.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lytus Technologies Holdings vs. Salesforce
Performance |
| Timeline |
| Lytus Technologies |
| Salesforce |
Lytus Technologies and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lytus Technologies and Salesforce
The main advantage of trading using opposite Lytus Technologies and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lytus Technologies position performs unexpectedly, Salesforce 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 Salesforce will offset losses from the drop in Salesforce's long position.| Lytus Technologies vs. HeartCore Enterprises | Lytus Technologies vs. Beamr Imaging Ltd | Lytus Technologies vs. Trust Stamp | Lytus Technologies vs. CXApp Inc |
| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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