Correlation Between Salesforce and SIMON

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

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

Diversification Opportunities for Salesforce and SIMON

-0.6

Correlation Coefficient

Salesforce  SIMON

Excellent diversification

The 3 months correlation between Salesforce and SIMON is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Salesforce i.e., Salesforce and SIMON go up and down completely randomly.

Pair Corralation between Salesforce and SIMON

Considering the 90-day investment horizon Salesforce is expected to under-perform the SIMON. In addition to that, Salesforce is 1.89 times more volatile than SIMON PPTY GROUP. It trades about -0.21 of its total potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.02 per unit of volatility. If you would invest  8,699  in SIMON PPTY GROUP on May 16, 2025 and sell it today you would earn a total of  47.00  from holding SIMON PPTY GROUP or generate 0.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	70.49%
Values	Daily Returns

Salesforce  vs.  SIMON PPTY GROUP

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 unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

SIMON PPTY GROUP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SIMON PPTY GROUP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SIMON is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Salesforce and SIMON

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

The idea behind Salesforce and SIMON PPTY GROUP 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.

Check out your portfolio center.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.