Correlation Between Presto Automation and Salesforce
Can any of the company-specific risk be diversified away by investing in both Presto Automation 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 Presto Automation and Salesforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presto Automation and Salesforce, you can compare the effects of market volatilities on Presto Automation 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 Presto Automation with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presto Automation and Salesforce.
Diversification Opportunities for Presto Automation and Salesforce
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Presto and Salesforce is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Presto Automation and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce and Presto Automation 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 Presto Automation 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 Presto Automation i.e., Presto Automation and Salesforce go up and down completely randomly.
Pair Corralation between Presto Automation and Salesforce
Given the investment horizon of 90 days Presto Automation is expected to under-perform the Salesforce. In addition to that, Presto Automation is 6.84 times more volatile than Salesforce. It trades about -0.08 of its total potential returns per unit of risk. Salesforce is currently generating about 0.07 per unit of volatility. If you would invest 20,860 in Salesforce on August 31, 2024 and sell it today you would earn a total of 12,139 from holding Salesforce or generate 58.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 79.68% |
| Values | Daily Returns |
Presto Automation vs. Salesforce
Performance |
| Timeline |
| Presto Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Salesforce |
Presto Automation and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presto Automation and Salesforce
The main advantage of trading using opposite Presto Automation and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presto Automation 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.| Presto Automation vs. CXApp Inc | Presto Automation vs. Bullfrog AI Holdings, | Presto Automation vs. Guardforce AI Co | Presto Automation vs. Dermata Therapeutics |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |