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
DigitalTown Inc vs SAP SE
Given the investment horizon of 30 days, DigitalTown Inc is expected to generate 18.05 times more return on investment than S A P. However, DigitalTown is 18.05 times more volatile than SAP SE. It trades about 0.09 of its potential returns per unit of risk. SAP SE is currently generating about 0.02 per unit of risk. If you would invest 21 in DigitalTown Inc on November 12, 2017 and sell it today you would earn a total of 1 from holding DigitalTown Inc or generate 4.76% return on investment over 30 days.
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Very good 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.
Compared to the overall equity markets, risk-adjusted returns on investments in DigitalTown Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in SAP SE are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.