Correlation Between GSW Immobilien and SALESFORCE INC

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

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

Diversification Opportunities for GSW Immobilien and SALESFORCE INC

-0.38

Correlation Coefficient

GSW Immobilien  SALESFORCE INC

Very good diversification

The 3 months correlation between GSW and SALESFORCE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GSW Immobilien AG and SALESFORCE INC CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SALESFORCE INC CDR and GSW Immobilien 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 GSW Immobilien AG are associated (or correlated) with SALESFORCE INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SALESFORCE INC CDR has no effect on the direction of GSW Immobilien i.e., GSW Immobilien and SALESFORCE INC go up and down completely randomly.

Pair Corralation between GSW Immobilien and SALESFORCE INC

Assuming the 90 days trading horizon GSW Immobilien AG is expected to generate 0.9 times more return on investment than SALESFORCE INC. However, GSW Immobilien AG is 1.11 times less risky than SALESFORCE INC. It trades about 0.01 of its potential returns per unit of risk. SALESFORCE INC CDR is currently generating about -0.02 per unit of risk. If you would invest  7,458  in GSW Immobilien AG on April 21, 2025 and sell it today you would earn a total of  42.00  from holding GSW Immobilien AG or generate 0.56% return on investment over 90 days.

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

GSW Immobilien AG  vs.  SALESFORCE INC CDR

GSW Immobilien AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GSW Immobilien AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, GSW Immobilien is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

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 nearly stable basic indicators, SALESFORCE INC is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GSW Immobilien and SALESFORCE INC

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

The idea behind GSW Immobilien AG and SALESFORCE INC 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.