Correlation Between Salesforce and Conifex Timber

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

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

Diversification Opportunities for Salesforce and Conifex Timber

0.43

Correlation Coefficient

Salesforce  Conifex Timber

Very weak diversification

The 3 months correlation between Salesforce and Conifex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Conifex Timber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifex Timber 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 Conifex Timber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifex Timber has no effect on the direction of Salesforce i.e., Salesforce and Conifex Timber go up and down completely randomly.

Pair Corralation between Salesforce and Conifex Timber

Considering the 90-day investment horizon Salesforce is expected to generate 0.44 times more return on investment than Conifex Timber. However, Salesforce is 2.28 times less risky than Conifex Timber. It trades about -0.11 of its potential returns per unit of risk. Conifex Timber is currently generating about -0.08 per unit of risk. If you would invest  26,874  in Salesforce on July 2, 2025 and sell it today you would lose (3,174) from holding Salesforce or give up 11.81% of portfolio value over 90 days.

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

Salesforce  vs.  Conifex Timber

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.

Conifex Timber

Risk-Adjusted Performance

Weakest

Over the last 90 days Conifex Timber 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in October 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Salesforce and Conifex Timber

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

The idea behind Salesforce and Conifex Timber 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.