Correlation Between Salesforce and One Step

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

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

Diversification Opportunities for Salesforce and One Step

0.05

Correlation Coefficient

Salesforce  One Step

Significant diversification

The 3 months correlation between Salesforce and One is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and One Step Vending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Step Vending 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 One Step. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Step Vending has no effect on the direction of Salesforce i.e., Salesforce and One Step go up and down completely randomly.

Pair Corralation between Salesforce and One Step

Considering the 90-day investment horizon Salesforce is expected to under-perform the One Step. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 8.03 times less risky than One Step. The stock trades about -0.01 of its potential returns per unit of risk. The One Step Vending is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1.44  in One Step Vending on May 1, 2025 and sell it today you would lose (0.47) from holding One Step Vending or give up 32.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Salesforce  vs.  One Step Vending

Salesforce

Risk-Adjusted Performance

Very Weak

Over the last 90 days Salesforce has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

One Step Vending

Risk-Adjusted Performance

Very Weak

Over the last 90 days One Step Vending has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, One Step 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 One Step

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

The idea behind Salesforce and One Step Vending 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.