Correlation Between GAMING FAC and S A P
Can any of the company-specific risk be diversified away by investing in both GAMING FAC 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 GAMING FAC 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 GAMING FAC SA and SAP SE, you can compare the effects of market volatilities on GAMING FAC 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 GAMING FAC with a short position of S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and S A P.
Diversification Opportunities for GAMING FAC and S A P
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GAMING and SAP is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE and GAMING FAC 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 GAMING FAC SA 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 GAMING FAC i.e., GAMING FAC and S A P go up and down completely randomly.
Pair Corralation between GAMING FAC and S A P
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the S A P. In addition to that, GAMING FAC is 1.59 times more volatile than SAP SE. It trades about -0.2 of its total potential returns per unit of risk. SAP SE is currently generating about 0.23 per unit of volatility. If you would invest 22,350 in SAP SE on September 24, 2024 and sell it today you would earn a total of 1,325 from holding SAP SE or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. SAP SE
Performance |
| Timeline |
| GAMING FAC SA |
| SAP SE |
GAMING FAC and S A P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and S A P
The main advantage of trading using opposite GAMING FAC and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC 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.| GAMING FAC vs. Nintendo Co | GAMING FAC vs. Sea Limited | GAMING FAC vs. Electronic Arts | GAMING FAC vs. NEXON Co |
| S A P vs. GAMING FAC SA | S A P vs. MCEWEN MINING INC | S A P vs. SERI INDUSTRIAL EO | S A P vs. Singapore Airlines Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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