Correlation Between Salesforce and Yinfu Gold

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

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

Diversification Opportunities for Salesforce and Yinfu Gold

0.0

Correlation Coefficient

Salesforce  Yinfu Gold

Pay attention - limited upside

The 3 months correlation between Salesforce and Yinfu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Yinfu Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yinfu Gold 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 Yinfu Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yinfu Gold has no effect on the direction of Salesforce i.e., Salesforce and Yinfu Gold go up and down completely randomly.

Pair Corralation between Salesforce and Yinfu Gold

If you would invest  16.00  in Yinfu Gold on February 10, 2024 and sell it today you would earn a total of  0.00  from holding Yinfu Gold or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Salesforce  vs.  Yinfu Gold

Salesforce

Risk-Adjusted Performance

0 of 100

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 very healthy basic indicators, Salesforce is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Yinfu Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yinfu Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Yinfu Gold is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Salesforce and Yinfu Gold

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

The idea behind Salesforce and Yinfu Gold 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.