Correlation Between Companhia and Salesforce

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

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

Diversification Opportunities for Companhia and Salesforce

-0.44

Correlation Coefficient

Companhia  Salesforce

Very good diversification

The 3 months correlation between Companhia and Salesforce is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Companhia de Saneamento and salesforce inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on salesforce inc and Companhia 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 Companhia de Saneamento 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 inc has no effect on the direction of Companhia i.e., Companhia and Salesforce go up and down completely randomly.

Pair Corralation between Companhia and Salesforce

Assuming the 90 days trading horizon Companhia de Saneamento is expected to generate 0.68 times more return on investment than Salesforce. However, Companhia de Saneamento is 1.47 times less risky than Salesforce. It trades about 0.26 of its potential returns per unit of risk. salesforce inc is currently generating about 0.07 per unit of risk. If you would invest  539.00  in Companhia de Saneamento on April 20, 2025 and sell it today you would earn a total of  159.00  from holding Companhia de Saneamento or generate 29.5% return on investment over 90 days.

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

Companhia de Saneamento  vs.  salesforce inc

Companhia de Saneamento

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Companhia de Saneamento are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Companhia unveiled solid returns over the last few months and may actually be approaching a breakup point.

salesforce inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in salesforce inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Salesforce may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Companhia and Salesforce

The main advantage of trading using opposite Companhia and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Companhia 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 Companhia de Saneamento and salesforce inc 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.