Correlation Between GAMES OPERATORS and Salesforce

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

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

Diversification Opportunities for GAMES OPERATORS and Salesforce

-0.38

Correlation Coefficient

GAMES OPERATORS  Salesforce

Very good diversification

The 3 months correlation between GAMES and Salesforce is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GAMES OPERATORS SA and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce and GAMES OPERATORS 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 GAMES OPERATORS SA 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 GAMES OPERATORS i.e., GAMES OPERATORS and Salesforce go up and down completely randomly.

Pair Corralation between GAMES OPERATORS and Salesforce

Assuming the 90 days horizon GAMES OPERATORS is expected to generate 1.27 times less return on investment than Salesforce. In addition to that, GAMES OPERATORS is 1.24 times more volatile than Salesforce. It trades about 0.04 of its total potential returns per unit of risk. Salesforce is currently generating about 0.06 per unit of volatility. If you would invest  20,918  in Salesforce on April 20, 2025 and sell it today you would earn a total of  1,367  from holding Salesforce or generate 6.54% return on investment over 90 days.

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

GAMES OPERATORS SA  vs.  Salesforce

GAMES OPERATORS SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GAMES OPERATORS SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, GAMES OPERATORS is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Salesforce

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Salesforce may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with GAMES OPERATORS and Salesforce

The main advantage of trading using opposite GAMES OPERATORS and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMES OPERATORS 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 GAMES OPERATORS SA 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.