Correlation Between Salesforce and Xiamen Goldenhome
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By analyzing existing cross correlation between Salesforce and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Salesforce and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Xiamen Goldenhome.
Diversification Opportunities for Salesforce and Xiamen Goldenhome
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Salesforce and Xiamen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Salesforce i.e., Salesforce and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Salesforce and Xiamen Goldenhome
Considering the 90-day investment horizon Salesforce is expected to generate 1.2 times less return on investment than Xiamen Goldenhome. But when comparing it to its historical volatility, Salesforce is 1.63 times less risky than Xiamen Goldenhome. It trades about 0.27 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Xiamen Goldenhome Co on September 1, 2024 and sell it today you would earn a total of 570.00 from holding Xiamen Goldenhome Co or generate 35.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 92.06% |
Values | Daily Returns |
Salesforce vs. Xiamen Goldenhome Co
Performance |
Timeline |
Salesforce |
Xiamen Goldenhome |
Salesforce and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Salesforce and Xiamen Goldenhome
The main advantage of trading using opposite Salesforce and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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