Correlation Between RAFAKO SA and Salesforce
Can any of the company-specific risk be diversified away by investing in both RAFAKO SA 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 RAFAKO SA and Salesforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RAFAKO SA and PZ Cormay SA, you can compare the effects of market volatilities on RAFAKO SA 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 RAFAKO SA with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of RAFAKO SA and Salesforce.
Diversification Opportunities for RAFAKO SA and Salesforce
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RAFAKO and Salesforce is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding RAFAKO SA and PZ Cormay SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PZ Cormay SA and RAFAKO SA 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 RAFAKO SA 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 PZ Cormay SA has no effect on the direction of RAFAKO SA i.e., RAFAKO SA and Salesforce go up and down completely randomly.
Pair Corralation between RAFAKO SA and Salesforce
Assuming the 90 days trading horizon RAFAKO SA is expected to generate 5.15 times more return on investment than Salesforce. However, RAFAKO SA is 5.15 times more volatile than PZ Cormay SA. It trades about -0.02 of its potential returns per unit of risk. PZ Cormay SA is currently generating about -0.17 per unit of risk. If you would invest 69.00 in RAFAKO SA on September 12, 2024 and sell it today you would lose (26.00) from holding RAFAKO SA or give up 37.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RAFAKO SA vs. PZ Cormay SA
Performance |
| Timeline |
| RAFAKO SA |
| PZ Cormay SA |
RAFAKO SA and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RAFAKO SA and Salesforce
The main advantage of trading using opposite RAFAKO SA and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RAFAKO SA 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.| RAFAKO SA vs. Biztech Konsulting SA | RAFAKO SA vs. Centrum Finansowe Banku | RAFAKO SA vs. Santander Bank Polska | RAFAKO SA vs. Cloud Technologies SA |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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