Correlation Between Salesforce and Guangzhou Shangpin

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Salesforce and Guangzhou Shangpin 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 Guangzhou Shangpin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Salesforce and Guangzhou Shangpin 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 Guangzhou Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Guangzhou Shangpin.

Diversification Opportunities for Salesforce and Guangzhou Shangpin

SalesforceGuangzhouDiversified AwaySalesforceGuangzhouDiversified Away100%
0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between Salesforce and Guangzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin 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 Guangzhou Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Salesforce i.e., Salesforce and Guangzhou Shangpin go up and down completely randomly.

Pair Corralation between Salesforce and Guangzhou Shangpin

Considering the 90-day investment horizon Salesforce is expected to generate 2.71 times less return on investment than Guangzhou Shangpin. In addition to that, Salesforce is 1.07 times more volatile than Guangzhou Shangpin Home. It trades about 0.09 of its total potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about 0.25 per unit of volatility. If you would invest  1,397  in Guangzhou Shangpin Home on September 14, 2024 and sell it today you would earn a total of  223.00  from holding Guangzhou Shangpin Home or generate 15.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Salesforce  vs.  Guangzhou Shangpin Home

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 010203040506070
JavaScript chart by amCharts 3.21.15CRM 300616
       Timeline  
Salesforce 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 19 (%) 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec260280300320340360
Guangzhou Shangpin Home 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Guangzhou Shangpin Home are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Guangzhou Shangpin sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1012141618

Salesforce and Guangzhou Shangpin Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.53-4.89-3.25-1.610.02731.843.75.577.44 0.020.030.040.050.060.070.08
JavaScript chart by amCharts 3.21.15CRM 300616
       Returns  

Pair Trading with Salesforce and Guangzhou Shangpin

The main advantage of trading using opposite Salesforce and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Guangzhou Shangpin 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 Guangzhou Shangpin will offset losses from the drop in Guangzhou Shangpin's long position.
The idea behind Salesforce and Guangzhou Shangpin Home 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes


 

Trending Assets