Correlation Between SALESFORCE INC and Equitable Holdings

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

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

Diversification Opportunities for SALESFORCE INC and Equitable Holdings

0.26

Correlation Coefficient

SALESFORCE INC  Equitable Holdings

Modest diversification

The 3 months correlation between SALESFORCE and Equitable is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SALESFORCE INC CDR and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings and SALESFORCE INC 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 INC CDR are associated (or correlated) with Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of SALESFORCE INC i.e., SALESFORCE INC and Equitable Holdings go up and down completely randomly.

Pair Corralation between SALESFORCE INC and Equitable Holdings

Assuming the 90 days trading horizon SALESFORCE INC CDR is expected to under-perform the Equitable Holdings. In addition to that, SALESFORCE INC is 1.38 times more volatile than Equitable Holdings. It trades about -0.09 of its total potential returns per unit of risk. Equitable Holdings is currently generating about 0.05 per unit of volatility. If you would invest  4,218  in Equitable Holdings on April 24, 2025 and sell it today you would earn a total of  182.00  from holding Equitable Holdings or generate 4.31% return on investment over 90 days.

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

SALESFORCE INC CDR  vs.  Equitable Holdings

SALESFORCE INC CDR

Risk-Adjusted Performance

Very Weak

Over the last 90 days SALESFORCE INC CDR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Equitable Holdings

Risk-Adjusted Performance

Insignificant

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

Pair Trading with SALESFORCE INC and Equitable Holdings

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

The idea behind SALESFORCE INC CDR and Equitable Holdings 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.