Correlation Between Salesforce and Oppenheimer Rochester

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

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

Diversification Opportunities for Salesforce and Oppenheimer Rochester

0.0

Correlation Coefficient

Salesforce  Oppenheimer Rochester

Pay attention - limited upside

The 3 months correlation between Salesforce and Oppenheimer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Oppenheimer Rochester High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Rochester 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 Oppenheimer Rochester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Rochester has no effect on the direction of Salesforce i.e., Salesforce and Oppenheimer Rochester go up and down completely randomly.

Pair Corralation between Salesforce and Oppenheimer Rochester

Considering the 90-day investment horizon Salesforce is expected to generate 5.46 times more return on investment than Oppenheimer Rochester. However, Salesforce is 5.46 times more volatile than Oppenheimer Rochester High. It trades about 0.27 of its potential returns per unit of risk. Oppenheimer Rochester High is currently generating about 0.09 per unit of risk. If you would invest  24,767  in Salesforce on September 3, 2024 and sell it today you would earn a total of  8,232  from holding Salesforce or generate 33.24% return on investment over 90 days.

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

Salesforce  vs.  Oppenheimer Rochester High

Salesforce

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Salesforce displayed solid returns over the last few months and may actually be approaching a breakup point.

Oppenheimer Rochester

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Rochester High are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oppenheimer Rochester 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 Oppenheimer Rochester

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

The idea behind Salesforce and Oppenheimer Rochester High 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.