Correlation Between Salesforce and Rex Energy
Can any of the company-specific risk be diversified away by investing in both Salesforce and Rex Energy 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 Rex Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Rex Energy, you can compare the effects of market volatilities on Salesforce and Rex Energy 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 Rex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Rex Energy.
Diversification Opportunities for Salesforce and Rex Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Rex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Rex Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rex Energy 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 Rex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rex Energy has no effect on the direction of Salesforce i.e., Salesforce and Rex Energy go up and down completely randomly.
Pair Corralation between Salesforce and Rex Energy
If you would invest (100.00) in Rex Energy on January 17, 2024 and sell it today you would earn a total of 100.00 from holding Rex Energy or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Salesforce vs. Rex Energy
Performance |
| Timeline |
| Salesforce |
| Rex Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and Rex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Rex Energy
The main advantage of trading using opposite Salesforce and Rex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Rex Energy 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 Rex Energy will offset losses from the drop in Rex Energy's long position.The idea behind Salesforce and Rex Energy 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.| Rex Energy vs. Ace Global Business | Rex Energy vs. Highway Holdings Limited | Rex Energy vs. Alto Ingredients | Rex Energy vs. Enersys |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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