Pair Correlation Between DigitalTown and S A P

This module allows you to analyze existing cross correlation between DigitalTown Inc and SAP SE. You can compare the effects of market volatilities on DigitalTown and S A P 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 DigitalTown with a short position of S A P. See also your portfolio center. Please also check ongoing floating volatility patterns of DigitalTown and S A P.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DigitalTown Inc  vs   SAP SE
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DigitalTown Inc is expected to generate 20.2 times more return on investment than S A P. However, DigitalTown is 20.2 times more volatile than SAP SE. It trades about 0.22 of its potential returns per unit of risk. SAP SE is currently generating about 0.09 per unit of risk. If you would invest  19  in DigitalTown Inc on September 17, 2017 and sell it today you would earn a total of  11  from holding DigitalTown Inc or generate 57.89% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DigitalTown and S A P
0.04

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding DigitalTown Inc and SAP SE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SAP SE and DigitalTown 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 DigitalTown Inc are associated (or correlated) with S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of DigitalTown i.e. DigitalTown and S A P go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

DigitalTown Inc

  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DigitalTown Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.

SAP SE

  
5 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in SAP SE are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.