Correlation Between SAP SE and First Republic
Can any of the company-specific risk be diversified away by investing in both SAP SE and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAP SE and First Republic Bank, you can compare the effects of market volatilities on SAP SE and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAP SE and First Republic.
Diversification Opportunities for SAP SE and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAP and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of SAP SE i.e., SAP SE and First Republic go up and down completely randomly.
Pair Corralation between SAP SE and First Republic
If you would invest 479,440 in SAP SE on September 13, 2024 and sell it today you would earn a total of 20,560 from holding SAP SE or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SAP SE vs. First Republic Bank
Performance |
| Timeline |
| SAP SE |
| First Republic Bank |
SAP SE and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAP SE and First Republic
The main advantage of trading using opposite SAP SE and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAP SE position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| SAP SE vs. Cognizant Technology Solutions | SAP SE vs. Genworth Financial | SAP SE vs. Ameriprise Financial | SAP SE vs. The Bank of |
| First Republic vs. Micron Technology | First Republic vs. Southern Copper | First Republic vs. Monster Beverage Corp | First Republic vs. United Airlines Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |