Correlation Between Salesforce and PDD Holdings
Can any of the company-specific risk be diversified away by investing in both Salesforce and PDD Holdings 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 PDD Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and PDD Holdings, you can compare the effects of market volatilities on Salesforce and PDD Holdings 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 PDD Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and PDD Holdings.
Diversification Opportunities for Salesforce and PDD Holdings
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salesforce and PDD is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and PDD Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDD Holdings 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 PDD Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDD Holdings has no effect on the direction of Salesforce i.e., Salesforce and PDD Holdings go up and down completely randomly.
Pair Corralation between Salesforce and PDD Holdings
Considering the 90-day investment horizon Salesforce is expected to generate 1.15 times more return on investment than PDD Holdings. However, Salesforce is 1.15 times more volatile than PDD Holdings. It trades about 0.04 of its potential returns per unit of risk. PDD Holdings is currently generating about -0.05 per unit of risk. If you would invest 25,162 in Salesforce on September 9, 2025 and sell it today you would earn a total of 895.00 from holding Salesforce or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Salesforce vs. PDD Holdings
Performance |
| Timeline |
| Salesforce |
| PDD Holdings |
Salesforce and PDD Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and PDD Holdings
The main advantage of trading using opposite Salesforce and PDD Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce position performs unexpectedly, PDD Holdings 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 PDD Holdings will offset losses from the drop in PDD Holdings' long position.| Salesforce vs. Shopify | Salesforce vs. SAP SE ADR | Salesforce vs. Uber Technologies | Salesforce vs. Applovin Corp |
| PDD Holdings vs. Greenidge Generation Holdings | PDD Holdings vs. Medirom Healthcare Technologies | PDD Holdings vs. Listed Funds Trust | PDD Holdings vs. Classic Value Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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