Correlation Between Salesforce and Global Star

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

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

Diversification Opportunities for Salesforce and Global Star

0.85

Correlation Coefficient

Salesforce  Global Star

Very poor diversification

The 3 months correlation between Salesforce and Global is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Global Star Acquisition, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Star Acquisition, 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 Global Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Star Acquisition, has no effect on the direction of Salesforce i.e., Salesforce and Global Star go up and down completely randomly.

Pair Corralation between Salesforce and Global Star

Considering the 90-day investment horizon Salesforce is expected to under-perform the Global Star. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 6.47 times less risky than Global Star. The stock trades about -0.18 of its potential returns per unit of risk. The Global Star Acquisition, is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,137  in Global Star Acquisition, on December 22, 2024 and sell it today you would lose (472.00) from holding Global Star Acquisition, or give up 41.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.33%
Values	Daily Returns

Salesforce  vs.  Global Star Acquisition,

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.

Global Star Acquisition,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Star Acquisition, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Salesforce and Global Star

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

The idea behind Salesforce and Global Star Acquisition, 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.