Correlation Between Salesforce and Simt Small

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

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

Diversification Opportunities for Salesforce and Simt Small

-0.43

Correlation Coefficient

Salesforce  Simt Small

Very good diversification

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

Pair Corralation between Salesforce and Simt Small

Considering the 90-day investment horizon Salesforce is expected to under-perform the Simt Small. In addition to that, Salesforce is 1.58 times more volatile than Simt Small Cap. It trades about -0.06 of its total potential returns per unit of risk. Simt Small Cap is currently generating about 0.06 per unit of volatility. If you would invest  2,243  in Simt Small Cap on July 22, 2025 and sell it today you would earn a total of  92.00  from holding Simt Small Cap or generate 4.1% 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.  Simt Small Cap

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 latest weak 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.

Simt Small Cap

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Small Cap are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt Small 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 Simt Small

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

The idea behind Salesforce and Simt Small Cap 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.