Correlation Between Salesforce and Atomera
Can any of the company-specific risk be diversified away by investing in both Salesforce and Atomera 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 Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Atomera, you can compare the effects of market volatilities on Salesforce and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Atomera.
Diversification Opportunities for Salesforce and Atomera
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Atomera is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Salesforce i.e., Salesforce and Atomera go up and down completely randomly.
Pair Corralation between Salesforce and Atomera
Considering the 90-day investment horizon Salesforce is expected to generate 0.37 times more return on investment than Atomera. However, Salesforce is 2.69 times less risky than Atomera. It trades about -0.05 of its potential returns per unit of risk. Atomera is currently generating about -0.04 per unit of risk. If you would invest 29,214 in Salesforce on May 30, 2025 and sell it today you would lose (4,198) from holding Salesforce or give up 14.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Salesforce vs. Atomera
Performance |
| Timeline |
| Salesforce |
| Atomera |
Salesforce and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Atomera
The main advantage of trading using opposite Salesforce and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
Check out your portfolio center.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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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