Correlation Between BluMetric Environmental and Salesforce

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

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

Diversification Opportunities for BluMetric Environmental and Salesforce

0.29

Correlation Coefficient

BluMetric Environmental  Salesforce

Modest diversification

The 3 months correlation between BluMetric and Salesforce is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BluMetric Environmental and SalesforceCom CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalesforceCom CDR and BluMetric Environmental 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 BluMetric Environmental 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 SalesforceCom CDR has no effect on the direction of BluMetric Environmental i.e., BluMetric Environmental and Salesforce go up and down completely randomly.

Pair Corralation between BluMetric Environmental and Salesforce

Assuming the 90 days horizon BluMetric Environmental is expected to generate 2.79 times more return on investment than Salesforce. However, BluMetric Environmental is 2.79 times more volatile than SalesforceCom CDR. It trades about 0.08 of its potential returns per unit of risk. SalesforceCom CDR is currently generating about 0.1 per unit of risk. If you would invest  119.00  in BluMetric Environmental on April 20, 2025 and sell it today you would earn a total of  21.00  from holding BluMetric Environmental or generate 17.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BluMetric Environmental  vs.  SalesforceCom CDR

BluMetric Environmental

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BluMetric Environmental are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, BluMetric Environmental showed solid returns over the last few months and may actually be approaching a breakup point.

SalesforceCom CDR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SalesforceCom CDR are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Salesforce may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BluMetric Environmental and Salesforce

The main advantage of trading using opposite BluMetric Environmental and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BluMetric Environmental 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 BluMetric Environmental and SalesforceCom CDR 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.