Correlation Between Examobile and Salesforce

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

By analyzing existing cross correlation between Examobile SA and PZ Cormay SA, you can compare the effects of market volatilities on Examobile and Salesforce 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 Examobile with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and Salesforce.

Diversification Opportunities for Examobile and Salesforce

-0.1

Correlation Coefficient

Examobile  Salesforce

Good diversification

The 3 months correlation between Examobile and Salesforce is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and PZ Cormay SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PZ Cormay SA and Examobile 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 Examobile SA are associated (or correlated) with Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PZ Cormay SA has no effect on the direction of Examobile i.e., Examobile and Salesforce go up and down completely randomly.

Pair Corralation between Examobile and Salesforce

Assuming the 90 days trading horizon Examobile SA is expected to under-perform the Salesforce. But the stock apears to be less risky and, when comparing its historical volatility, Examobile SA is 1.11 times less risky than Salesforce. The stock trades about -0.24 of its potential returns per unit of risk. The PZ Cormay SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  42.00  in PZ Cormay SA on October 9, 2024 and sell it today you would earn a total of  0.00  from holding PZ Cormay SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.0%
Values	Daily Returns

Examobile SA  vs.  PZ Cormay SA

Examobile SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Examobile SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

PZ Cormay SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PZ Cormay SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Examobile and Salesforce

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

The idea behind Examobile SA and PZ Cormay SA 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.