Correlation Between Salesforce and Blackstone
Can any of the company-specific risk be diversified away by investing in both Salesforce and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Blackstone Group, you can compare the effects of market volatilities on Salesforce and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Blackstone.
Diversification Opportunities for Salesforce and Blackstone
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Blackstone is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Salesforce i.e., Salesforce and Blackstone go up and down completely randomly.
Pair Corralation between Salesforce and Blackstone
Considering the 90-day investment horizon Salesforce is expected to generate 1.0 times more return on investment than Blackstone. However, Salesforce is 1.0 times more volatile than Blackstone Group. It trades about 0.11 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.09 per unit of risk. If you would invest 22,450 in Salesforce on January 25, 2024 and sell it today you would earn a total of 5,169 from holding Salesforce or generate 23.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Blackstone Group
Performance |
| Timeline |
| Salesforce |
| Blackstone Group |
Salesforce and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Blackstone
The main advantage of trading using opposite Salesforce and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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