Correlation Between Salesforce and Credit Suisse

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

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

Diversification Opportunities for Salesforce and Credit Suisse

-0.31

Correlation Coefficient

Salesforce  Credit Suisse

Very good diversification

The 3 months correlation between Salesforce and Credit is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Credit Suisse Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Floating 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Floating has no effect on the direction of Salesforce i.e., Salesforce and Credit Suisse go up and down completely randomly.

Pair Corralation between Salesforce and Credit Suisse

Considering the 90-day investment horizon Salesforce is expected to generate 1.83 times less return on investment than Credit Suisse. In addition to that, Salesforce is 10.66 times more volatile than Credit Suisse Floating. It trades about 0.02 of its total potential returns per unit of risk. Credit Suisse Floating is currently generating about 0.3 per unit of volatility. If you would invest  610.00  in Credit Suisse Floating on April 30, 2025 and sell it today you would earn a total of  16.00  from holding Credit Suisse Floating or generate 2.62% return on investment over 90 days.

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

Salesforce  vs.  Credit Suisse Floating

Salesforce

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Salesforce is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Credit Suisse Floating

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Floating are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Credit Suisse is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Salesforce and Credit Suisse

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

The idea behind Salesforce and Credit Suisse Floating 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 Global Correlations module to find global opportunities by holding instruments from different markets.