Correlation Between Salesforce and Phreesia

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

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

Diversification Opportunities for Salesforce and Phreesia

-0.19

Correlation Coefficient

Salesforce  Phreesia

Good diversification

The 3 months correlation between Salesforce and Phreesia is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia 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 Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of Salesforce i.e., Salesforce and Phreesia go up and down completely randomly.

Pair Corralation between Salesforce and Phreesia

Considering the 90-day investment horizon Salesforce is expected to generate 0.59 times more return on investment than Phreesia. However, Salesforce is 1.7 times less risky than Phreesia. It trades about 0.03 of its potential returns per unit of risk. Phreesia is currently generating about 0.01 per unit of risk. If you would invest  21,022  in Salesforce on May 3, 2025 and sell it today you would earn a total of  4,811  from holding Salesforce or generate 22.89% return on investment over 90 days.

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

Salesforce  vs.  Phreesia

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.

Phreesia

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phreesia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical indicators, Phreesia may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Salesforce and Phreesia

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

The idea behind Salesforce and Phreesia 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.