Correlation Between Salesforce and MFS Municipal
Can any of the company-specific risk be diversified away by investing in both Salesforce and MFS Municipal 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 MFS Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and MFS Municipal Income, you can compare the effects of market volatilities on Salesforce and MFS Municipal 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 MFS Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and MFS Municipal.
Diversification Opportunities for Salesforce and MFS Municipal
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and MFS is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and MFS Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Municipal Income 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 MFS Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Municipal Income has no effect on the direction of Salesforce i.e., Salesforce and MFS Municipal go up and down completely randomly.
Pair Corralation between Salesforce and MFS Municipal
Considering the 90-day investment horizon Salesforce is expected to generate 2.61 times more return on investment than MFS Municipal. However, Salesforce is 2.61 times more volatile than MFS Municipal Income. It trades about 0.02 of its potential returns per unit of risk. MFS Municipal Income is currently generating about 0.01 per unit of risk. If you would invest 26,522 in Salesforce on April 27, 2025 and sell it today you would earn a total of 389.00 from holding Salesforce or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. MFS Municipal Income
Performance |
| Timeline |
| Salesforce |
| MFS Municipal Income |
Salesforce and MFS Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and MFS Municipal
The main advantage of trading using opposite Salesforce and MFS Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, MFS Municipal 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 MFS Municipal will offset losses from the drop in MFS Municipal's long position.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify Class A | Salesforce vs. Workday |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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