Correlation Between SAP SE and Lyft
Can any of the company-specific risk be diversified away by investing in both SAP SE and Lyft 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 SAP SE and Lyft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAP SE and Lyft Inc, you can compare the effects of market volatilities on SAP SE and Lyft 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 SAP SE with a short position of Lyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAP SE and Lyft.
Diversification Opportunities for SAP SE and Lyft
Pay attention - limited upside
The 3 months correlation between SAP and Lyft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE and Lyft Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyft Inc and SAP SE 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 are associated (or correlated) with Lyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyft Inc has no effect on the direction of SAP SE i.e., SAP SE and Lyft go up and down completely randomly.
Pair Corralation between SAP SE and Lyft
If you would invest 10,266 in SAP SE on November 19, 2024 and sell it today you would earn a total of 17,934 from holding SAP SE or generate 174.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SAP SE vs. Lyft Inc
Performance |
| Timeline |
| SAP SE |
| Lyft Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SAP SE and Lyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAP SE and Lyft
The main advantage of trading using opposite SAP SE and Lyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAP SE position performs unexpectedly, Lyft 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 Lyft will offset losses from the drop in Lyft's long position.| SAP SE vs. THAI BEVERAGE | SAP SE vs. Fevertree Drinks PLC | SAP SE vs. Ultra Clean Holdings | SAP SE vs. SCOTT TECHNOLOGY |
| Lyft vs. VIENNA INSURANCE GR | Lyft vs. Singapore Reinsurance | Lyft vs. Vienna Insurance Group | Lyft vs. SINGAPORE AIRLINES |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |