Correlation Between Superior Plus and S A P
Can any of the company-specific risk be diversified away by investing in both Superior Plus and S A P 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 Superior Plus and S A P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and SAP SE, you can compare the effects of market volatilities on Superior Plus and S A P 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 Superior Plus with a short position of S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and S A P.
Diversification Opportunities for Superior Plus and S A P
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and SAP is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE and Superior Plus 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 Superior Plus Corp are associated (or correlated) with S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of Superior Plus i.e., Superior Plus and S A P go up and down completely randomly.
Pair Corralation between Superior Plus and S A P
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the S A P. In addition to that, Superior Plus is 1.52 times more volatile than SAP SE. It trades about -0.02 of its total potential returns per unit of risk. SAP SE is currently generating about 0.12 per unit of volatility. If you would invest 9,947 in SAP SE on August 29, 2024 and sell it today you would earn a total of 12,103 from holding SAP SE or generate 121.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. SAP SE
Performance |
| Timeline |
| Superior Plus Corp |
| SAP SE |
Superior Plus and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and S A P
The main advantage of trading using opposite Superior Plus and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| S A P vs. REINET INVESTMENTS SCA | S A P vs. Boiron SA | S A P vs. BlueScope Steel Limited | S A P vs. AOYAMA TRADING |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |