Correlation Analysis Between Merck and Salesforce

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

Comparative Performance


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 existing stock price confusion, may contribute to short-horizon losses for the traders.
Salesforce Com  

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 and Salesforce Volatility Contrast

 Predicted Return Density 

Merck Company Inc  vs.  Salesforce Com Inc

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Merck Company is expected to generate 0.82 times more return on investment than Salesforce. However, Merck Company is 1.21 times less risky than Salesforce. It trades about 0.06 of its potential returns per unit of risk. Salesforce Com is currently generating about -0.05 per unit of risk. If you would invest  8,159  in Merck Company on September 14, 2019 and sell it today you would earn a total of  319.00  from holding Merck Company or generate 3.91% return on investment over 30 days.

Pair Corralation between Merck and Salesforce

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Merck and Salesforce

Merck Company Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Merck Company Inc and Salesforce Com Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Salesforce Com and Merck 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 Merck 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 Merck i.e. Merck and Salesforce go up and down completely randomly.
See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.