Correlation Between Customers Bancorp and Salesforce
Can any of the company-specific risk be diversified away by investing in both Customers Bancorp and Salesforce 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 Customers Bancorp and Salesforce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Customers Bancorp and Salesforce, you can compare the effects of market volatilities on Customers Bancorp and Salesforce 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 Customers Bancorp with a short position of Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Customers Bancorp and Salesforce.
Diversification Opportunities for Customers Bancorp and Salesforce
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Customers and Salesforce is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Customers Bancorp and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce and Customers Bancorp 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 Customers Bancorp are associated (or correlated) with Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce has no effect on the direction of Customers Bancorp i.e., Customers Bancorp and Salesforce go up and down completely randomly.
Pair Corralation between Customers Bancorp and Salesforce
Given the investment horizon of 90 days Customers Bancorp is expected to generate 0.41 times more return on investment than Salesforce. However, Customers Bancorp is 2.43 times less risky than Salesforce. It trades about 0.06 of its potential returns per unit of risk. Salesforce is currently generating about -0.05 per unit of risk. If you would invest 2,093 in Customers Bancorp on September 3, 2025 and sell it today you would earn a total of 66.00 from holding Customers Bancorp or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Customers Bancorp vs. Salesforce
Performance |
| Timeline |
| Customers Bancorp |
| Salesforce |
Customers Bancorp and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Customers Bancorp and Salesforce
The main advantage of trading using opposite Customers Bancorp and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Customers Bancorp position performs unexpectedly, Salesforce 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 Salesforce will offset losses from the drop in Salesforce's long position.| Customers Bancorp vs. Salesforce | Customers Bancorp vs. BOS Better Online | Customers Bancorp vs. Renesas Electronics | Customers Bancorp vs. TCL Electronics Holdings |
| Salesforce vs. Mineral Mountain Mining | Salesforce vs. Perseus Mining Limited | Salesforce vs. Nok Airlines Public | Salesforce vs. Altair Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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