Correlation Between Salesforce and FS KKR

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

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

Diversification Opportunities for Salesforce and FS KKR

-0.03

Correlation Coefficient

Salesforce  FS KKR

Good diversification

The 3 months correlation between Salesforce and FSK is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital 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 FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Salesforce i.e., Salesforce and FS KKR go up and down completely randomly.

Pair Corralation between Salesforce and FS KKR

Considering the 90-day investment horizon Salesforce is expected to generate 1.47 times more return on investment than FS KKR. However, Salesforce is 1.47 times more volatile than FS KKR Capital. It trades about 0.04 of its potential returns per unit of risk. FS KKR Capital is currently generating about -0.07 per unit of risk. If you would invest  25,183  in Salesforce on September 7, 2025 and sell it today you would earn a total of  874.00  from holding Salesforce or generate 3.47% return on investment over 90 days.

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

Salesforce  vs.  FS KKR Capital

Salesforce

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 2 (%) 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.

FS KKR Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days FS KKR Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, FS KKR is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Salesforce and FS KKR

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

The idea behind Salesforce and FS KKR Capital 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.