Correlation Between Salesforce and Grupo Catalana

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

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

Diversification Opportunities for Salesforce and Grupo Catalana

-0.74

Correlation Coefficient

Salesforce  Grupo Catalana

Pay attention - limited upside

The 3 months correlation between Salesforce and Grupo is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Grupo Catalana Occidente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Catalana Occidente 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 Grupo Catalana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Catalana Occidente has no effect on the direction of Salesforce i.e., Salesforce and Grupo Catalana go up and down completely randomly.

Pair Corralation between Salesforce and Grupo Catalana

Considering the 90-day investment horizon Salesforce is expected to under-perform the Grupo Catalana. In addition to that, Salesforce is 1.79 times more volatile than Grupo Catalana Occidente. It trades about -0.18 of its total potential returns per unit of risk. Grupo Catalana Occidente is currently generating about 0.23 per unit of volatility. If you would invest  3,619  in Grupo Catalana Occidente on December 21, 2024 and sell it today you would earn a total of  541.00  from holding Grupo Catalana Occidente or generate 14.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Salesforce  vs.  Grupo Catalana Occidente

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.

Grupo Catalana Occidente

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Catalana Occidente are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Grupo Catalana exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Salesforce and Grupo Catalana

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

The idea behind Salesforce and Grupo Catalana Occidente 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.