Correlation Between Salesforce and Masoval AS

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

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

Diversification Opportunities for Salesforce and Masoval AS

-0.79

Correlation Coefficient

Salesforce  Masoval AS

Pay attention - limited upside

The 3 months correlation between Salesforce and Masoval is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Masoval AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masoval AS 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 Masoval AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masoval AS has no effect on the direction of Salesforce i.e., Salesforce and Masoval AS go up and down completely randomly.

Pair Corralation between Salesforce and Masoval AS

Considering the 90-day investment horizon Salesforce is expected to generate 0.77 times more return on investment than Masoval AS. However, Salesforce is 1.3 times less risky than Masoval AS. It trades about 0.25 of its potential returns per unit of risk. Masoval AS is currently generating about -0.06 per unit of risk. If you would invest  25,250  in Salesforce on August 30, 2024 and sell it today you would earn a total of  7,751  from holding Salesforce or generate 30.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.92%
Values	Daily Returns

Salesforce  vs.  Masoval AS

Salesforce

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Salesforce displayed solid returns over the last few months and may actually be approaching a breakup point.

Masoval AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Masoval AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Salesforce and Masoval AS

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

The idea behind Salesforce and Masoval AS 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.