Correlation Between Salesforce and Calvert Global

Can any of the company-specific risk be diversified away by investing in both Salesforce and Calvert Global 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 Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Salesforce and Calvert Global Water, you can compare the effects of market volatilities on Salesforce and Calvert Global 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Calvert Global.

Diversification Opportunities for Salesforce and Calvert Global

-0.24

Correlation Coefficient

Salesforce  Calvert Global

Very good diversification

The 3 months correlation between Salesforce and CALVERT is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Calvert Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Water 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 are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Water has no effect on the direction of Salesforce i.e., Salesforce and Calvert Global go up and down completely randomly.

Pair Corralation between Salesforce and Calvert Global

Considering the 90-day investment horizon Salesforce is expected to under-perform the Calvert Global. In addition to that, Salesforce is 2.39 times more volatile than Calvert Global Water. It trades about -0.18 of its total potential returns per unit of risk. Calvert Global Water is currently generating about 0.02 per unit of volatility. If you would invest  2,693  in Calvert Global Water on December 30, 2024 and sell it today you would earn a total of  15.00  from holding Calvert Global Water or generate 0.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Salesforce  vs.  Calvert Global Water

Salesforce

Risk-Adjusted Performance

Very Weak

Over the last 90 days Salesforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Calvert Global Water

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Global Water are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Salesforce and Calvert Global

The main advantage of trading using opposite Salesforce and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.

The idea behind Salesforce and Calvert Global Water pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.