Correlation Analysis Between Salesforce and Merck

This module allows you to analyze existing cross correlation between Salesforce Com and Merck Company. You can compare the effects of market volatilities on Salesforce and Merck 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 Merck. See also your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Merck.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Salesforce Com  
00

Risk-Adjusted Performance

Over the last 30 days Salesforce Com has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Salesforce is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Merck  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Merck Company are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The prevailing stock price confusion, may contribute to short-horizon losses for the traders.

Salesforce and Merck Volatility Contrast

 Predicted Return Density 
      Returns 

Salesforce Com Inc  vs.  Merck Company Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Salesforce Com is expected to under-perform the Merck. In addition to that, Salesforce is 1.31 times more volatile than Merck Company. It trades about -0.06 of its total potential returns per unit of risk. Merck Company is currently generating about 0.05 per unit of volatility. If you would invest  8,139  in Merck Company on September 17, 2019 and sell it today you would earn a total of  270.00  from holding Merck Company or generate 3.32% return on investment over 30 days.

Pair Corralation between Salesforce and Merck

-0.31
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Salesforce and Merck

Salesforce Com Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Salesforce Com Inc and Merck Company Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Merck 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 Com are associated (or correlated) with Merck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merck has no effect on the direction of Salesforce i.e. Salesforce and Merck go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.


 
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