Correlation Between SAP SE and Bowmo
Can any of the company-specific risk be diversified away by investing in both SAP SE and Bowmo 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 Bowmo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAP SE and Bowmo Inc, you can compare the effects of market volatilities on SAP SE and Bowmo 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 Bowmo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAP SE and Bowmo.
Diversification Opportunities for SAP SE and Bowmo
Excellent diversification
The 3 months correlation between SAP and Bowmo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE and Bowmo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowmo 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 Bowmo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowmo Inc has no effect on the direction of SAP SE i.e., SAP SE and Bowmo go up and down completely randomly.
Pair Corralation between SAP SE and Bowmo
Assuming the 90 days horizon SAP SE is expected to generate 0.07 times more return on investment than Bowmo. However, SAP SE is 13.58 times less risky than Bowmo. It trades about 0.6 of its potential returns per unit of risk. Bowmo Inc is currently generating about -0.22 per unit of risk. If you would invest 24,274 in SAP SE on November 2, 2024 and sell it today you would earn a total of 3,621 from holding SAP SE or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAP SE vs. Bowmo Inc
Performance |
| Timeline |
| SAP SE |
| Bowmo Inc |
SAP SE and Bowmo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAP SE and Bowmo
The main advantage of trading using opposite SAP SE and Bowmo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAP SE position performs unexpectedly, Bowmo 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 Bowmo will offset losses from the drop in Bowmo'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 |
| Bowmo vs. Harrison Vickers and | Bowmo vs. Protext Mobility | Bowmo vs. TonnerOne World Holdings | Bowmo vs. Trans Global Grp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |