Correlation Between SALESFORCE INC and Chuangs China
Can any of the company-specific risk be diversified away by investing in both SALESFORCE INC and Chuangs China 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 INC and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SALESFORCE INC CDR and Chuangs China Investments, you can compare the effects of market volatilities on SALESFORCE INC and Chuangs China 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 INC with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of SALESFORCE INC and Chuangs China.
Diversification Opportunities for SALESFORCE INC and Chuangs China
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SALESFORCE and Chuangs is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SALESFORCE INC CDR and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and SALESFORCE INC 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 INC CDR are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of SALESFORCE INC i.e., SALESFORCE INC and Chuangs China go up and down completely randomly.
Pair Corralation between SALESFORCE INC and Chuangs China
Assuming the 90 days trading horizon SALESFORCE INC CDR is expected to generate 0.47 times more return on investment than Chuangs China. However, SALESFORCE INC CDR is 2.12 times less risky than Chuangs China. It trades about 0.08 of its potential returns per unit of risk. Chuangs China Investments is currently generating about -0.01 per unit of risk. If you would invest 757.00 in SALESFORCE INC CDR on September 23, 2024 and sell it today you would earn a total of 983.00 from holding SALESFORCE INC CDR or generate 129.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SALESFORCE INC CDR vs. Chuangs China Investments
Performance |
Timeline |
SALESFORCE INC CDR |
Chuangs China Investments |
SALESFORCE INC and Chuangs China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SALESFORCE INC and Chuangs China
The main advantage of trading using opposite SALESFORCE INC and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SALESFORCE INC position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.SALESFORCE INC vs. Salesforce | SALESFORCE INC vs. SAP SE | SALESFORCE INC vs. Uber Technologies | SALESFORCE INC vs. Nemetschek AG ON |
Chuangs China vs. Sun Hung Kai | Chuangs China vs. China Overseas Land | Chuangs China vs. Longfor Group Holdings | Chuangs China vs. Mitsui Fudosan Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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