Correlation Between WixCom and Salesforce

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

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

Diversification Opportunities for WixCom and Salesforce

-0.03

Correlation Coefficient

WixCom  Salesforce

Good diversification

The 3 months correlation between WixCom and Salesforce is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding WixCom and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce and WixCom 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 WixCom 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 Salesforce has no effect on the direction of WixCom i.e., WixCom and Salesforce go up and down completely randomly.

Pair Corralation between WixCom and Salesforce

Considering the 90-day investment horizon WixCom is expected to generate 1.33 times more return on investment than Salesforce. However, WixCom is 1.33 times more volatile than Salesforce. It trades about 0.05 of its potential returns per unit of risk. Salesforce is currently generating about 0.03 per unit of risk. If you would invest  8,714  in WixCom on August 4, 2025 and sell it today you would earn a total of  5,840  from holding WixCom or generate 67.02% return on investment over 90 days.

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

WixCom  vs.  Salesforce

WixCom

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in WixCom are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, WixCom showed solid returns over the last few months and may actually be approaching a breakup point.

Salesforce

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Salesforce is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with WixCom and Salesforce

The main advantage of trading using opposite WixCom and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WixCom 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 WixCom and Salesforce 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.