Correlation Between Salesforce and Associated Capital

Can any of the company-specific risk be diversified away by investing in both Salesforce and Associated Capital 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 Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Salesforce and Associated Capital Group, you can compare the effects of market volatilities on Salesforce and Associated Capital 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 Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Associated Capital.

Diversification Opportunities for Salesforce and Associated Capital

-0.22

Correlation Coefficient

Salesforce  Associated Capital

Very good diversification

The 3 months correlation between Salesforce and Associated is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital 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 Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Salesforce i.e., Salesforce and Associated Capital go up and down completely randomly.

Pair Corralation between Salesforce and Associated Capital

Considering the 90-day investment horizon Salesforce is expected to under-perform the Associated Capital. In addition to that, Salesforce is 1.26 times more volatile than Associated Capital Group. It trades about 0.0 of its total potential returns per unit of risk. Associated Capital Group is currently generating about 0.16 per unit of volatility. If you would invest  3,250  in Associated Capital Group on September 6, 2025 and sell it today you would earn a total of  366.00  from holding Associated Capital Group or generate 11.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.43%
Values	Daily Returns

Salesforce  vs.  Associated Capital Group

Salesforce

Risk-Adjusted Performance

Weakest

Over the last 90 days Salesforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Salesforce is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Associated Capital

Risk-Adjusted Performance

Good

Over the last 90 days Associated Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather fragile fundamental indicators, Associated Capital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Salesforce and Associated Capital

The main advantage of trading using opposite Salesforce and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.

The idea behind Salesforce and Associated Capital Group 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.