Correlation Between Salesforce and Bristol Myers

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

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

Diversification Opportunities for Salesforce and Bristol Myers

0.14
  Correlation Coefficient
Salesforce Com
Bristol Myers Squibb

Average diversification

The 3 months correlation between Salesforce and Bristol is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce Com Inc and Bristol Myers Squibb Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bristol Myers Squibb 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 Com are associated (or correlated) with Bristol Myers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bristol Myers Squibb has no effect on the direction of Salesforce i.e. Salesforce and Bristol Myers go up and down completely randomly.

Pair Corralation between Salesforce and Bristol Myers

Considering the 30-days investment horizon, Salesforce Com is expected to generate 1.78 times more return on investment than Bristol Myers. However, Salesforce is 1.78 times more volatile than Bristol Myers Squibb. It trades about 0.23 of its potential returns per unit of risk. Bristol Myers Squibb is currently generating about 0.07 per unit of risk. If you would invest  13,431  in Salesforce Com on June 2, 2020 and sell it today you would earn a total of  5,955  from holding Salesforce Com or generate 44.34% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Salesforce Com Inc  vs.  Bristol Myers Squibb Company

 Performance (%) 
      Timeline 
Salesforce Com 
1515

Salesforce Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce Com are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Salesforce revealed solid returns over the last few months and may actually be approaching a breakup point.
Bristol Myers Squibb 
55

Bristol Myers Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bristol Myers Squibb are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In spite of fairly weak basic indicators, Bristol Myers may actually be approaching a critical reversion point that can send shares even higher in August 2020.

Salesforce and Bristol Myers Volatility Contrast

 Predicted Return Density 
      Returns 
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