Correlation Between Salesforce and My Size
Can any of the company-specific risk be diversified away by investing in both Salesforce and My Size 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 My Size into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and My Size, you can compare the effects of market volatilities on Salesforce and My Size 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 My Size. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and My Size.
Diversification Opportunities for Salesforce and My Size
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salesforce and MYSZ is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size 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 My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of Salesforce i.e., Salesforce and My Size go up and down completely randomly.
Pair Corralation between Salesforce and My Size
Considering the 90-day investment horizon Salesforce is expected to generate 0.38 times more return on investment than My Size. However, Salesforce is 2.65 times less risky than My Size. It trades about -0.23 of its potential returns per unit of risk. My Size is currently generating about -0.86 per unit of risk. If you would invest 30,606 in Salesforce on January 25, 2024 and sell it today you would lose (2,938) from holding Salesforce or give up 9.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 19.05% |
| Values | Daily Returns |
Salesforce vs. My Size
Performance |
| Timeline |
| Salesforce |
| My Size |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and My Size Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and My Size
The main advantage of trading using opposite Salesforce and My Size positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, My Size 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 My Size will offset losses from the drop in My Size's long position.The idea behind Salesforce and My Size 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.| My Size vs. One Software Technologies | My Size vs. Abra Information Technologies | My Size vs. Synel MLL Payway | My Size vs. Ai Conversation Systems |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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