Correlation Between Salesforce and Jasa Marga

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

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

Diversification Opportunities for Salesforce and Jasa Marga

0.73

Correlation Coefficient

Salesforce  Jasa Marga

Poor diversification

The 3 months correlation between Salesforce and Jasa is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Jasa Marga Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasa Marga Tbk 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 Jasa Marga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasa Marga Tbk has no effect on the direction of Salesforce i.e., Salesforce and Jasa Marga go up and down completely randomly.

Pair Corralation between Salesforce and Jasa Marga

Considering the 90-day investment horizon Salesforce is expected to under-perform the Jasa Marga. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 1.39 times less risky than Jasa Marga. The stock trades about -0.18 of its potential returns per unit of risk. The Jasa Marga Tbk is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  433,000  in Jasa Marga Tbk on December 30, 2024 and sell it today you would lose (35,000) from holding Jasa Marga Tbk or give up 8.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.77%
Values	Daily Returns

Salesforce  vs.  Jasa Marga Tbk

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.

Jasa Marga Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jasa Marga Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Salesforce and Jasa Marga

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

The idea behind Salesforce and Jasa Marga Tbk 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.