Correlation Between Salesforce and Naked Brand
Can any of the company-specific risk be diversified away by investing in both Salesforce and Naked Brand 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 Naked Brand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Naked Brand Group, you can compare the effects of market volatilities on Salesforce and Naked Brand 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 Naked Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Naked Brand.
Diversification Opportunities for Salesforce and Naked Brand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salesforce and Naked is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Naked Brand Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naked Brand Group 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 Naked Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naked Brand Group has no effect on the direction of Salesforce i.e., Salesforce and Naked Brand go up and down completely randomly.
Pair Corralation between Salesforce and Naked Brand
If you would invest (100.00) in Naked Brand Group on February 8, 2024 and sell it today you would earn a total of 100.00 from holding Naked Brand Group or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Salesforce vs. Naked Brand Group
Performance |
Timeline |
Salesforce |
Naked Brand Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salesforce and Naked Brand Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Salesforce and Naked Brand
The main advantage of trading using opposite Salesforce and Naked Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Naked Brand 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 Naked Brand will offset losses from the drop in Naked Brand's long position.The idea behind Salesforce and Naked Brand Group 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.Naked Brand vs. Stepstone Group | Naked Brand vs. GAMCO Global Gold | Naked Brand vs. Ameriprise Financial | Naked Brand vs. InFintT Acquisition Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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