Correlation Between Salesforce and Saat Defensive

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

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

Diversification Opportunities for Salesforce and Saat Defensive

-0.55

Correlation Coefficient

Salesforce  Saat Defensive

Excellent diversification

The 3 months correlation between Salesforce and Saat is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy 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 Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Salesforce i.e., Salesforce and Saat Defensive go up and down completely randomly.

Pair Corralation between Salesforce and Saat Defensive

Considering the 90-day investment horizon Salesforce is expected to under-perform the Saat Defensive. In addition to that, Salesforce is 14.96 times more volatile than Saat Defensive Strategy. It trades about -0.08 of its total potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.23 per unit of volatility. If you would invest  938.00  in Saat Defensive Strategy on May 4, 2025 and sell it today you would earn a total of  14.00  from holding Saat Defensive Strategy or generate 1.49% 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.  Saat Defensive Strategy

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 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.

Saat Defensive Strategy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Saat Defensive Strategy are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Saat Defensive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Salesforce and Saat Defensive

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

The idea behind Salesforce and Saat Defensive Strategy 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..