Correlation Analysis Between Merck and Salesforce

This module allows you to analyze existing cross correlation between Merck Company and Salesforce. 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
Symbolsvs
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Comparative Performance

Merck  
00

Risk-Adjusted Performance

Over the last 30 days Merck Company has generated negative risk-adjusted returns adding no value to investors with long positions. 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  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. 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 
      Returns 

Merck Company Inc  vs.  Salesforce com Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Merck is expected to generate 18.35 times less return on investment than Salesforce. But when comparing it to its historical volatility, Merck Company is 1.09 times less risky than Salesforce. It trades about 0.0 of its potential returns per unit of risk. Salesforce is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  15,256  in Salesforce on August 22, 2019 and sell it today you would earn a total of  264.00  from holding Salesforce or generate 1.73% return on investment over 30 days.

Pair Corralation between Merck and Salesforce

-0.39
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
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 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 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.


 
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