Correlation Between SAP SE and Adcore
Can any of the company-specific risk be diversified away by investing in both SAP SE and Adcore 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 Adcore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAP SE and Adcore Inc, you can compare the effects of market volatilities on SAP SE and Adcore 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 Adcore. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAP SE and Adcore.
Diversification Opportunities for SAP SE and Adcore
Very good diversification
The 3 months correlation between SAP and Adcore is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE and Adcore Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adcore 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 Adcore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adcore Inc has no effect on the direction of SAP SE i.e., SAP SE and Adcore go up and down completely randomly.
Pair Corralation between SAP SE and Adcore
Assuming the 90 days horizon SAP SE is expected to generate 0.97 times more return on investment than Adcore. However, SAP SE is 1.03 times less risky than Adcore. It trades about -0.03 of its potential returns per unit of risk. Adcore Inc is currently generating about -0.21 per unit of risk. If you would invest 23,800 in SAP SE on August 25, 2024 and sell it today you would lose (295.00) from holding SAP SE or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SAP SE vs. Adcore Inc
Performance |
| Timeline |
| SAP SE |
| Adcore Inc |
SAP SE and Adcore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAP SE and Adcore
The main advantage of trading using opposite SAP SE and Adcore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAP SE position performs unexpectedly, Adcore 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 Adcore will offset losses from the drop in Adcore's long position.| SAP SE vs. RenoWorks Software | SAP SE vs. 01 Communique Laboratory | SAP SE vs. Temenos Group AG | SAP SE vs. Xero Limited |
| Adcore vs. CurrentC Power | Adcore vs. Agent Information Software | Adcore vs. BASE Inc | Adcore vs. Maxwell Resource |
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 Stocks Directory module to find actively traded stocks across global markets.
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