Correlation Between Salesforce and Argo Group

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

By analyzing existing cross correlation between Salesforce and Argo Group 65, you can compare the effects of market volatilities on Salesforce and Argo Group 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Argo Group.

Diversification Opportunities for Salesforce and Argo Group

-0.63

Correlation Coefficient

Salesforce  Argo Group

Excellent diversification

The 3 months correlation between Salesforce and Argo is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Argo Group 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group 65 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 Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group 65 has no effect on the direction of Salesforce i.e., Salesforce and Argo Group go up and down completely randomly.

Pair Corralation between Salesforce and Argo Group

Considering the 90-day investment horizon Salesforce is expected to under-perform the Argo Group. In addition to that, Salesforce is 3.08 times more volatile than Argo Group 65. It trades about -0.19 of its total potential returns per unit of risk. Argo Group 65 is currently generating about 0.31 per unit of volatility. If you would invest  1,969  in Argo Group 65 on May 11, 2025 and sell it today you would earn a total of  187.00  from holding Argo Group 65 or generate 9.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Salesforce  vs.  Argo Group 65

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 unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Argo Group 65

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Group 65 are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Argo Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Salesforce and Argo Group

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

The idea behind Salesforce and Argo Group 65 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.