Correlation Between Salesforce and Fidelity International

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

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

Diversification Opportunities for Salesforce and Fidelity International

-0.03

Correlation Coefficient

Salesforce  Fidelity International

Good diversification

The 3 months correlation between Salesforce and Fidelity is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Fidelity International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Salesforce i.e., Salesforce and Fidelity International go up and down completely randomly.

Pair Corralation between Salesforce and Fidelity International

Considering the 90-day investment horizon Salesforce is expected to under-perform the Fidelity International. In addition to that, Salesforce is 1.84 times more volatile than Fidelity International Growth. It trades about -0.18 of its total potential returns per unit of risk. Fidelity International Growth is currently generating about 0.05 per unit of volatility. If you would invest  1,989  in Fidelity International Growth on December 31, 2024 and sell it today you would earn a total of  50.00  from holding Fidelity International Growth or generate 2.51% return on investment over 90 days.

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

Salesforce  vs.  Fidelity International Growth

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 May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Fidelity International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity International Growth are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking indicators, Fidelity International 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 Fidelity International

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

The idea behind Salesforce and Fidelity International Growth 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.