Correlation Between Salesforce and Bien Sparebank

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

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

Diversification Opportunities for Salesforce and Bien Sparebank

0.38

Correlation Coefficient

Salesforce  Bien Sparebank

Weak diversification

The 3 months correlation between Salesforce and Bien is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Bien Sparebank ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bien Sparebank ASA 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 Bien Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bien Sparebank ASA has no effect on the direction of Salesforce i.e., Salesforce and Bien Sparebank go up and down completely randomly.

Pair Corralation between Salesforce and Bien Sparebank

Considering the 90-day investment horizon Salesforce is expected to under-perform the Bien Sparebank. In addition to that, Salesforce is 1.26 times more volatile than Bien Sparebank ASA. It trades about -0.08 of its total potential returns per unit of risk. Bien Sparebank ASA is currently generating about -0.08 per unit of volatility. If you would invest  14,800  in Bien Sparebank ASA on May 6, 2025 and sell it today you would lose (1,000.00) from holding Bien Sparebank ASA or give up 6.76% of portfolio value over 90 days.

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

Salesforce  vs.  Bien Sparebank ASA

Salesforce

Risk-Adjusted Performance

Very Weak

Over the last 90 days Salesforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent 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.

Bien Sparebank ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bien Sparebank ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Salesforce and Bien Sparebank

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

The idea behind Salesforce and Bien Sparebank ASA 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.