Correlation Between Salesforce and Intel Corp

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

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

Diversification Opportunities for Salesforce and Intel Corp

-0.47

Correlation Coefficient

Salesforce  Intel Corp

Very good diversification

The 3 months correlation between Salesforce and Intel is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Intel Corp CEDEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel Corp CEDEAR 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 Intel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel Corp CEDEAR has no effect on the direction of Salesforce i.e., Salesforce and Intel Corp go up and down completely randomly.

Pair Corralation between Salesforce and Intel Corp

Considering the 90-day investment horizon Salesforce is expected to under-perform the Intel Corp. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 2.84 times less risky than Intel Corp. The stock trades about -0.08 of its potential returns per unit of risk. The Intel Corp CEDEAR is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  605,000  in Intel Corp CEDEAR on July 10, 2025 and sell it today you would earn a total of  554,000  from holding Intel Corp CEDEAR or generate 91.57% 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.  Intel Corp CEDEAR

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 latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Intel Corp CEDEAR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intel Corp CEDEAR are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intel Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Salesforce and Intel Corp

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

The idea behind Salesforce and Intel Corp CEDEAR 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.