Correlation Between Salesforce and First Hawaiian

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

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

Diversification Opportunities for Salesforce and First Hawaiian

-0.06

Correlation Coefficient

Salesforce  First Hawaiian

Good diversification

The 3 months correlation between Salesforce and First is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian 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 First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of Salesforce i.e., Salesforce and First Hawaiian go up and down completely randomly.

Pair Corralation between Salesforce and First Hawaiian

Considering the 90-day investment horizon Salesforce is expected to generate 74.19 times less return on investment than First Hawaiian. In addition to that, Salesforce is 1.03 times more volatile than First Hawaiian. It trades about 0.0 of its total potential returns per unit of risk. First Hawaiian is currently generating about 0.11 per unit of volatility. If you would invest  2,271  in First Hawaiian on May 1, 2025 and sell it today you would earn a total of  210.00  from holding First Hawaiian or generate 9.25% return on investment over 90 days.

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

Salesforce  vs.  First Hawaiian

Salesforce

Risk-Adjusted Performance

Weak

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

First Hawaiian

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in First Hawaiian are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical indicators, First Hawaiian may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Salesforce and First Hawaiian

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

The idea behind Salesforce and First Hawaiian 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.