Correlation Analysis Between Salesforce and Microsoft

This module allows you to analyze existing cross correlation between Salesforce Com and Microsoft Corporation. You can compare the effects of market volatilities on Salesforce and Microsoft 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 Microsoft. See also your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Microsoft.
Horizon     30 Days    Login   to change
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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.
Microsoft  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unchanging essential indicators, Microsoft is not utilizing all of its potentials. The continuing stock price uproar, may contribute to short horizon losses for the leadership.

Salesforce and Microsoft Volatility Contrast

 Predicted Return Density 
      Returns 

Salesforce Com Inc  vs.  Microsoft Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Salesforce Com is expected to under-perform the Microsoft. In addition to that, Salesforce is 1.09 times more volatile than Microsoft Corporation. It trades about -0.05 of its total potential returns per unit of risk. Microsoft Corporation is currently generating about 0.04 per unit of volatility. If you would invest  13,615  in Microsoft Corporation on September 14, 2019 and sell it today you would earn a total of  381.00  from holding Microsoft Corporation or generate 2.8% return on investment over 30 days.

Pair Corralation between Salesforce and Microsoft

0.43
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Salesforce and Microsoft

Salesforce Com Inc diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Salesforce Com Inc and Microsoft Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Salesforce i.e. Salesforce and Microsoft go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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