Correlation Between Dayforce and Salesforce

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

By analyzing existing cross correlation between Dayforce and SalesforceCom CDR, you can compare the effects of market volatilities on Dayforce and Salesforce 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 Dayforce with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dayforce and Salesforce.

Diversification Opportunities for Dayforce and Salesforce

-0.56

Correlation Coefficient

Dayforce  Salesforce

Excellent diversification

The 3 months correlation between Dayforce and Salesforce is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dayforce and SalesforceCom CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalesforceCom CDR and Dayforce 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 Dayforce are associated (or correlated) with Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SalesforceCom CDR has no effect on the direction of Dayforce i.e., Dayforce and Salesforce go up and down completely randomly.

Pair Corralation between Dayforce and Salesforce

Assuming the 90 days trading horizon Dayforce is expected to under-perform the Salesforce. But the stock apears to be less risky and, when comparing its historical volatility, Dayforce is 4.08 times less risky than Salesforce. The stock trades about -0.01 of its potential returns per unit of risk. The SalesforceCom CDR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,893  in SalesforceCom CDR on September 12, 2025 and sell it today you would earn a total of  138.00  from holding SalesforceCom CDR or generate 7.29% return on investment over 90 days.

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

Dayforce  vs.  SalesforceCom CDR

Dayforce

Risk-Adjusted Performance

Weak

Over the last 90 days Dayforce has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Dayforce is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

SalesforceCom CDR

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SalesforceCom CDR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Salesforce may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Dayforce and Salesforce

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

The idea behind Dayforce and SalesforceCom CDR 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.