Correlation Between Salesforce and Equity Growth

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

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

Diversification Opportunities for Salesforce and Equity Growth

-0.65

Correlation Coefficient

Salesforce  Equity Growth

Excellent diversification

The 3 months correlation between Salesforce and EQUITY is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Equity Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth 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 Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth has no effect on the direction of Salesforce i.e., Salesforce and Equity Growth go up and down completely randomly.

Pair Corralation between Salesforce and Equity Growth

Considering the 90-day investment horizon Salesforce is expected to under-perform the Equity Growth. In addition to that, Salesforce is 3.07 times more volatile than Equity Growth Fund. It trades about -0.08 of its total potential returns per unit of risk. Equity Growth Fund is currently generating about 0.22 per unit of volatility. If you would invest  3,511  in Equity Growth Fund on July 9, 2025 and sell it today you would earn a total of  286.00  from holding Equity Growth Fund or generate 8.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Salesforce  vs.  Equity Growth Fund

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 latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Equity Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Equity Growth Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Equity Growth may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Salesforce and Equity Growth

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

The idea behind Salesforce and Equity Growth Fund 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.