Correlation Between Salesforce and Immersion
Can any of the company-specific risk be diversified away by investing in both Salesforce and Immersion 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 Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Immersion, you can compare the effects of market volatilities on Salesforce and Immersion 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 Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Immersion.
Diversification Opportunities for Salesforce and Immersion
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salesforce and Immersion is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Immersion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immersion 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 Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immersion has no effect on the direction of Salesforce i.e., Salesforce and Immersion go up and down completely randomly.
Pair Corralation between Salesforce and Immersion
Considering the 90-day investment horizon Salesforce is expected to under-perform the Immersion. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce is 2.37 times less risky than Immersion. The stock trades about -0.25 of its potential returns per unit of risk. The Immersion is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 665.00 in Immersion on September 3, 2025 and sell it today you would earn a total of 11.00 from holding Immersion or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Immersion
Performance |
| Timeline |
| Salesforce |
| Immersion |
Salesforce and Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Immersion
The main advantage of trading using opposite Salesforce and Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, Immersion 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 Immersion will offset losses from the drop in Immersion's long position.| Salesforce vs. Mineral Mountain Mining | Salesforce vs. Perseus Mining Limited | Salesforce vs. Nok Airlines Public | Salesforce vs. Altair Corp |
| Immersion vs. Kingboard Chemical Holdings | Immersion vs. ON Semiconductor | Immersion vs. Elmos Semiconductor SE | Immersion vs. BE Semiconductor Industries |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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