Correlation Between Salesforce and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Salesforce and Berkshire Hathaway 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 and Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between salesforce inc and Berkshire Hathaway, you can compare the effects of market volatilities on Salesforce and Berkshire Hathaway 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 with a short position of Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Berkshire Hathaway.
Diversification Opportunities for Salesforce and Berkshire Hathaway
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salesforce and Berkshire is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding salesforce inc and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway and Salesforce 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 are associated (or correlated) with Berkshire Hathaway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Hathaway has no effect on the direction of Salesforce i.e., Salesforce and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Salesforce and Berkshire Hathaway
Assuming the 90 days trading horizon salesforce inc is expected to generate 2.65 times more return on investment than Berkshire Hathaway. However, Salesforce is 2.65 times more volatile than Berkshire Hathaway. It trades about 0.17 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.07 per unit of risk. If you would invest 8,871 in salesforce inc on September 14, 2024 and sell it today you would earn a total of 889.00 from holding salesforce inc or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
salesforce inc vs. Berkshire Hathaway
Performance |
| Timeline |
| salesforce inc |
| Berkshire Hathaway |
Salesforce and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Berkshire Hathaway
The main advantage of trading using opposite Salesforce and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Berkshire Hathaway 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 Berkshire Hathaway will offset losses from the drop in Berkshire Hathaway's long position.| Salesforce vs. Fundo Investimento Imobiliario | Salesforce vs. LESTE FDO INV | Salesforce vs. Fras le SA | Salesforce vs. Western Digital |
| Berkshire Hathaway vs. Take Two Interactive Software | Berkshire Hathaway vs. BIONTECH SE DRN | Berkshire Hathaway vs. salesforce inc | Berkshire Hathaway vs. Lupatech SA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |