Correlation Between Sunstone Hotel and SALESFORCE INC
Can any of the company-specific risk be diversified away by investing in both Sunstone Hotel and SALESFORCE INC 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 Sunstone Hotel and SALESFORCE INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunstone Hotel Investors and SALESFORCE INC CDR, you can compare the effects of market volatilities on Sunstone Hotel and SALESFORCE INC 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 Sunstone Hotel with a short position of SALESFORCE INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunstone Hotel and SALESFORCE INC.
Diversification Opportunities for Sunstone Hotel and SALESFORCE INC
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunstone and SALESFORCE is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sunstone Hotel Investors and SALESFORCE INC CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SALESFORCE INC CDR and Sunstone Hotel 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 Sunstone Hotel Investors are associated (or correlated) with SALESFORCE INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SALESFORCE INC CDR has no effect on the direction of Sunstone Hotel i.e., Sunstone Hotel and SALESFORCE INC go up and down completely randomly.
Pair Corralation between Sunstone Hotel and SALESFORCE INC
Assuming the 90 days horizon Sunstone Hotel Investors is expected to under-perform the SALESFORCE INC. But the stock apears to be less risky and, when comparing its historical volatility, Sunstone Hotel Investors is 1.54 times less risky than SALESFORCE INC. The stock trades about -0.02 of its potential returns per unit of risk. The SALESFORCE INC CDR is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,168 in SALESFORCE INC CDR on September 10, 2025 and sell it today you would earn a total of 32.00 from holding SALESFORCE INC CDR or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunstone Hotel Investors vs. SALESFORCE INC CDR
Performance |
| Timeline |
| Sunstone Hotel Investors |
| SALESFORCE INC CDR |
Sunstone Hotel and SALESFORCE INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunstone Hotel and SALESFORCE INC
The main advantage of trading using opposite Sunstone Hotel and SALESFORCE INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunstone Hotel position performs unexpectedly, SALESFORCE INC 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 INC will offset losses from the drop in SALESFORCE INC's long position.| Sunstone Hotel vs. Host Hotels Resorts | Sunstone Hotel vs. Pebblebrook Hotel Trust | Sunstone Hotel vs. Xenia Hotels Resorts | Sunstone Hotel vs. Summit Hotel Properties |
| SALESFORCE INC vs. Salesforce | SALESFORCE INC vs. Uber Technologies | SALESFORCE INC vs. Rocket Internet SE | SALESFORCE INC vs. Origin Agritech |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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