Correlation Between Salesforce and Waldencast Acquisition

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

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

Diversification Opportunities for Salesforce and Waldencast Acquisition

0.29

Correlation Coefficient

Salesforce  Waldencast Acquisition

Modest diversification

The 3 months correlation between Salesforce and Waldencast is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Waldencast Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waldencast Acquisition 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 Waldencast Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waldencast Acquisition has no effect on the direction of Salesforce i.e., Salesforce and Waldencast Acquisition go up and down completely randomly.

Pair Corralation between Salesforce and Waldencast Acquisition

Considering the 90-day investment horizon Salesforce is expected to generate 0.29 times more return on investment than Waldencast Acquisition. However, Salesforce is 3.5 times less risky than Waldencast Acquisition. It trades about -0.08 of its potential returns per unit of risk. Waldencast Acquisition Corp is currently generating about -0.11 per unit of risk. If you would invest  27,220  in Salesforce on May 5, 2025 and sell it today you would lose (2,146) from holding Salesforce or give up 7.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Salesforce  vs.  Waldencast Acquisition Corp

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 inconsistent 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.

Waldencast Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Waldencast Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Salesforce and Waldencast Acquisition

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

The idea behind Salesforce and Waldencast Acquisition Corp 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.