Correlation Between NRG Energy, and Salesforce
Can any of the company-specific risk be diversified away by investing in both NRG Energy, 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 NRG Energy, and Salesforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRG Energy, and salesforce inc, you can compare the effects of market volatilities on NRG Energy, 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 NRG Energy, with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRG Energy, and Salesforce.
Diversification Opportunities for NRG Energy, and Salesforce
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NRG and Salesforce is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NRG Energy, and salesforce inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on salesforce inc and NRG Energy, 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 NRG Energy, 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 inc has no effect on the direction of NRG Energy, i.e., NRG Energy, and Salesforce go up and down completely randomly.
Pair Corralation between NRG Energy, and Salesforce
If you would invest (100.00) in NRG Energy, on October 13, 2024 and sell it today you would earn a total of 100.00 from holding NRG Energy, or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NRG Energy, vs. salesforce inc
Performance |
| Timeline |
| NRG Energy, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| salesforce inc |
NRG Energy, and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRG Energy, and Salesforce
The main advantage of trading using opposite NRG Energy, and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRG Energy, 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.| NRG Energy, vs. DXC Technology | NRG Energy, vs. Spotify Technology SA | NRG Energy, vs. Check Point Software | NRG Energy, vs. TechnipFMC plc |
| Salesforce vs. Annaly Capital Management, | Salesforce vs. Marvell Technology | Salesforce vs. DXC Technology | Salesforce vs. Raytheon Technologies |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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