This module allows you to analyze existing cross correlation between Ford Motor Company and Salesforce Com. You can compare the effects of market volatilities on Ford Motor and Salesforce 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 Ford Motor with a short position of Salesforce. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and Salesforce.
|Horizon||30 Days Login to change|
Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Over the last 30 days Salesforce Com has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.
Ford Motor and Salesforce Volatility Contrast
Predicted Return Density
Ford Motor Company vs. Salesforce Com Inc
Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 1.03 times more return on investment than Salesforce. However, Ford Motor is 1.03 times more volatile than Salesforce Com. It trades about -0.07 of its potential returns per unit of risk. Salesforce Com is currently generating about -0.09 per unit of risk. If you would invest 1,002 in Ford Motor Company on September 18, 2019 and sell it today you would lose (79.00) from holding Ford Motor Company or give up 7.88% of portfolio value over 30 days.
Pair Corralation between Ford Motor and Salesforce
|Time Period||3 Months [change]|
Diversification Opportunities for Ford Motor and Salesforce
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Salesforce Com Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Salesforce Com and Ford Motor 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 Ford Motor Company are associated (or correlated) with Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce Com has no effect on the direction of Ford Motor i.e. Ford Motor and Salesforce 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.