Correlation Between Salesforce and Bet-at-home

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

By analyzing existing cross correlation between Salesforce and bet at home AG, you can compare the effects of market volatilities on Salesforce and Bet-at-home 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 Bet-at-home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Bet-at-home.

Diversification Opportunities for Salesforce and Bet-at-home

-0.92

Correlation Coefficient

Salesforce  Bet-at-home

Pay attention - limited upside

The 3 months correlation between Salesforce and Bet-at-home is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home 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 Bet-at-home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Salesforce i.e., Salesforce and Bet-at-home go up and down completely randomly.

Pair Corralation between Salesforce and Bet-at-home

Assuming the 90 days trading horizon Salesforce is expected to generate 1.08 times more return on investment than Bet-at-home. However, Salesforce is 1.08 times more volatile than bet at home AG. It trades about 0.28 of its potential returns per unit of risk. bet at home AG is currently generating about -0.19 per unit of risk. If you would invest  23,055  in Salesforce on September 13, 2024 and sell it today you would earn a total of  10,990  from holding Salesforce or generate 47.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Salesforce  vs.  bet at home AG

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 comparatively fragile basic indicators, Salesforce unveiled solid returns over the last few months and may actually be approaching a breakup point.

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Salesforce and Bet-at-home

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

The idea behind Salesforce and bet at home AG 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.