Correlation Between S A P and WisdomTree Inflation
Can any of the company-specific risk be diversified away by investing in both S A P and WisdomTree Inflation 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 S A P and WisdomTree Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAP SE ADR and WisdomTree Inflation Plus, you can compare the effects of market volatilities on S A P and WisdomTree Inflation 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 S A P with a short position of WisdomTree Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of S A P and WisdomTree Inflation.
Diversification Opportunities for S A P and WisdomTree Inflation
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SAP and WisdomTree is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE ADR and WisdomTree Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Inflation Plus and S A P 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 SAP SE ADR are associated (or correlated) with WisdomTree Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Inflation Plus has no effect on the direction of S A P i.e., S A P and WisdomTree Inflation go up and down completely randomly.
Pair Corralation between S A P and WisdomTree Inflation
Considering the 90-day investment horizon SAP SE ADR is expected to under-perform the WisdomTree Inflation. In addition to that, S A P is 1.81 times more volatile than WisdomTree Inflation Plus. It trades about -0.13 of its total potential returns per unit of risk. WisdomTree Inflation Plus is currently generating about 0.2 per unit of volatility. If you would invest 3,189 in WisdomTree Inflation Plus on October 28, 2025 and sell it today you would earn a total of 321.00 from holding WisdomTree Inflation Plus or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
SAP SE ADR vs. WisdomTree Inflation Plus
Performance |
| Timeline |
| SAP SE ADR |
| WisdomTree Inflation Plus |
S A P and WisdomTree Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S A P and WisdomTree Inflation
The main advantage of trading using opposite S A P and WisdomTree Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S A P position performs unexpectedly, WisdomTree Inflation 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 WisdomTree Inflation will offset losses from the drop in WisdomTree Inflation's long position.| S A P vs. Tyler Technologies | S A P vs. Roper Technologies | S A P vs. Cadence Design Systems | S A P vs. PTC Inc |
| WisdomTree Inflation vs. WisdomTree MidCap Quality | WisdomTree Inflation vs. Litman Gregory Funds | WisdomTree Inflation vs. Tidal Trust II | WisdomTree Inflation vs. Tidal Trust II |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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