Correlation Between Salesforce and Intel
Can any of the company-specific risk be diversified away by investing in both Salesforce and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Intel, you can compare the effects of market volatilities on Salesforce and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Intel.
Diversification Opportunities for Salesforce and Intel
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Intel is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Salesforce i.e., Salesforce and Intel go up and down completely randomly.
Pair Corralation between Salesforce and Intel
Considering the 90-day investment horizon Salesforce is expected to generate 0.76 times more return on investment than Intel. However, Salesforce is 1.32 times less risky than Intel. It trades about -0.06 of its potential returns per unit of risk. Intel is currently generating about -0.15 per unit of risk. If you would invest 28,934 in Salesforce on January 17, 2024 and sell it today you would lose (1,644) from holding Salesforce or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Intel
Performance |
| Timeline |
| Salesforce |
| Intel |
Salesforce and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Intel
The main advantage of trading using opposite Salesforce and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.The idea behind Salesforce and Intel 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |