Correlation Between Salesforce and Highland Floating
Can any of the company-specific risk be diversified away by investing in both Salesforce and Highland Floating 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 Highland Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Highland Floating Rate, you can compare the effects of market volatilities on Salesforce and Highland Floating 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 Highland Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Highland Floating.
Diversification Opportunities for Salesforce and Highland Floating
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salesforce and Highland is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Highland Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Floating Rate 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 Highland Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Floating Rate has no effect on the direction of Salesforce i.e., Salesforce and Highland Floating go up and down completely randomly.
Pair Corralation between Salesforce and Highland Floating
Considering the 90-day investment horizon Salesforce is expected to under-perform the Highland Floating. In addition to that, Salesforce is 3.7 times more volatile than Highland Floating Rate. It trades about -0.05 of its total potential returns per unit of risk. Highland Floating Rate is currently generating about 0.05 per unit of volatility. If you would invest 894.00 in Highland Floating Rate on July 20, 2025 and sell it today you would earn a total of 15.00 from holding Highland Floating Rate or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Highland Floating Rate
Performance |
| Timeline |
| Salesforce |
| Highland Floating Rate |
Salesforce and Highland Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Highland Floating
The main advantage of trading using opposite Salesforce and Highland Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Highland Floating 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 Highland Floating will offset losses from the drop in Highland Floating's long position.| Salesforce vs. Uber Technologies | Salesforce vs. Applovin Corp | Salesforce vs. Shopify | Salesforce vs. Intuit Inc |
| Highland Floating vs. Guidemark Large Cap | Highland Floating vs. Conservative Balanced Allocation | Highland Floating vs. Gmo Equity Allocation | Highland Floating vs. Guggenheim Large Cap |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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