Correlation Between Salesforce and Compania

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

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

Diversification Opportunities for Salesforce and Compania

-0.35

Correlation Coefficient

Salesforce  Compania

Very good diversification

The 3 months correlation between Salesforce and Compania is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Compania de Transporte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania de Transporte 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 Compania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania de Transporte has no effect on the direction of Salesforce i.e., Salesforce and Compania go up and down completely randomly.

Pair Corralation between Salesforce and Compania

Considering the 90-day investment horizon Salesforce is expected to under-perform the Compania. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 2.99 times less risky than Compania. The stock trades about -0.06 of its potential returns per unit of risk. The Compania de Transporte is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  203,162  in Compania de Transporte on September 1, 2025 and sell it today you would earn a total of  142,338  from holding Compania de Transporte or generate 70.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.97%
Values	Daily Returns

Salesforce  vs.  Compania de Transporte

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 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.

Compania de Transporte

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Compania de Transporte are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compania sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Salesforce and Compania

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

The idea behind Salesforce and Compania de Transporte 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 Correlations module to find global opportunities by holding instruments from different markets.