Correlation Between Salesforce and Icon Equity

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

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

Diversification Opportunities for Salesforce and Icon Equity

-0.43

Correlation Coefficient

Salesforce  Icon Equity

Very good diversification

The 3 months correlation between Salesforce and Icon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Icon Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Equity Income 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 Icon Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Equity Income has no effect on the direction of Salesforce i.e., Salesforce and Icon Equity go up and down completely randomly.

Pair Corralation between Salesforce and Icon Equity

Considering the 90-day investment horizon Salesforce is expected to under-perform the Icon Equity. In addition to that, Salesforce is 1.87 times more volatile than Icon Equity Income. It trades about -0.22 of its total potential returns per unit of risk. Icon Equity Income is currently generating about 0.14 per unit of volatility. If you would invest  1,608  in Icon Equity Income on May 15, 2025 and sell it today you would earn a total of  118.00  from holding Icon Equity Income or generate 7.34% 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.  Icon Equity Income

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 unsteady 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.

Icon Equity Income

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Equity Income are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Icon Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Salesforce and Icon Equity

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

The idea behind Salesforce and Icon Equity Income 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.