Correlation Between Salesforce and Flow Traders

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

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

Diversification Opportunities for Salesforce and Flow Traders

0.24

Correlation Coefficient

Salesforce  Flow Traders

Modest diversification

The 3 months correlation between Salesforce and Flow is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Flow Traders BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders BV 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 Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders BV has no effect on the direction of Salesforce i.e., Salesforce and Flow Traders go up and down completely randomly.

Pair Corralation between Salesforce and Flow Traders

Considering the 90-day investment horizon Salesforce is expected to generate 1.16 times more return on investment than Flow Traders. However, Salesforce is 1.16 times more volatile than Flow Traders BV. It trades about 0.06 of its potential returns per unit of risk. Flow Traders BV is currently generating about -0.03 per unit of risk. If you would invest  24,215  in Salesforce on September 10, 2025 and sell it today you would earn a total of  1,738  from holding Salesforce or generate 7.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Salesforce  vs.  Flow Traders BV

Salesforce

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Salesforce may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Flow Traders BV

Risk-Adjusted Performance

Weakest

Over the last 90 days Flow Traders BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Flow Traders is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Salesforce and Flow Traders

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

The idea behind Salesforce and Flow Traders BV 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.