Correlation Between Salesforce and Lokman Hekim

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

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

Diversification Opportunities for Salesforce and Lokman Hekim

-0.76

Correlation Coefficient

Salesforce  Lokman Hekim

Pay attention - limited upside

The 3 months correlation between Salesforce and Lokman is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Lokman Hekim Engurusag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lokman Hekim Engurusag 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 Lokman Hekim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lokman Hekim Engurusag has no effect on the direction of Salesforce i.e., Salesforce and Lokman Hekim go up and down completely randomly.

Pair Corralation between Salesforce and Lokman Hekim

Considering the 90-day investment horizon Salesforce is expected to under-perform the Lokman Hekim. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 2.2 times less risky than Lokman Hekim. The stock trades about -0.02 of its potential returns per unit of risk. The Lokman Hekim Engurusag is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  6,200  in Lokman Hekim Engurusag on February 23, 2024 and sell it today you would earn a total of  3,860  from holding Lokman Hekim Engurusag or generate 62.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.75%
Values	Daily Returns

Salesforce  vs.  Lokman Hekim Engurusag

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 current stock price disarray, may contribute to short-term losses for the investors.

Lokman Hekim Engurusag

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lokman Hekim Engurusag are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical indicators, Lokman Hekim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Salesforce and Lokman Hekim

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

The idea behind Salesforce and Lokman Hekim Engurusag 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.