Correlation Between Salesforce and WisdomTree Continuous

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

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

Diversification Opportunities for Salesforce and WisdomTree Continuous

-0.51

Correlation Coefficient

Salesforce  WisdomTree Continuous

Excellent diversification

The 3 months correlation between Salesforce and WisdomTree is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and WisdomTree Continuous Commodit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Continuous 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 WisdomTree Continuous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Continuous has no effect on the direction of Salesforce i.e., Salesforce and WisdomTree Continuous go up and down completely randomly.

Pair Corralation between Salesforce and WisdomTree Continuous

Considering the 90-day investment horizon Salesforce is expected to under-perform the WisdomTree Continuous. In addition to that, Salesforce is 2.63 times more volatile than WisdomTree Continuous Commodity. It trades about -0.14 of its total potential returns per unit of risk. WisdomTree Continuous Commodity is currently generating about 0.07 per unit of volatility. If you would invest  1,973  in WisdomTree Continuous Commodity on May 21, 2025 and sell it today you would earn a total of  47.00  from holding WisdomTree Continuous Commodity or generate 2.38% return on investment over 90 days.

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

Salesforce  vs.  WisdomTree Continuous Commodit

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 unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

WisdomTree Continuous

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Continuous Commodity are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, WisdomTree Continuous is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Salesforce and WisdomTree Continuous

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

The idea behind Salesforce and WisdomTree Continuous Commodity 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.