Correlation Between Salesforce and EMagin
Can any of the company-specific risk be diversified away by investing in both Salesforce and EMagin 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 EMagin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and EMagin, you can compare the effects of market volatilities on Salesforce and EMagin 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 EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and EMagin.
Diversification Opportunities for Salesforce and EMagin
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and EMagin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin 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 EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of Salesforce i.e., Salesforce and EMagin go up and down completely randomly.
Pair Corralation between Salesforce and EMagin
If you would invest 207.00 in EMagin on January 24, 2024 and sell it today you would earn a total of 0.00 from holding EMagin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Salesforce vs. EMagin
Performance |
| Timeline |
| Salesforce |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and EMagin
The main advantage of trading using opposite Salesforce and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.The idea behind Salesforce and EMagin 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.| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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