Benchmark  United States  NYSE  10,865   5.8281  0.0537% 


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Correlation analysis between S A P and Google

    
  
Summary
Performance
FundamentalsTechnicalsRecomendation
   Valuation
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Investment horizon:  
  30 Days    Login   to change
  
This module allows you to analyze existing cross correlation between SAP AG and Google Inc. You can compare the effects of market volatilities on S A P and Google 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 S A P with a short position of Google. Please also check ongoing floating volatility patterns of S A P and Google.
 SAP AG  vs   Google Inc.
Daily Returns (%)
SAP   GOOG   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, SAP AG is expected to under-perform the Google. In addition to that, S A P is 1.49 times more volatile than Google Inc. It trades about -0.2 of its total potential returns per unit of risk. Google Inc is currently generating about -0.11 per unit of volatility. If you would invest  53,333  in Google Inc on June 5, 2015 and sell it today you would lose (993) from holding Google Inc or give up 1.86% of portfolio value over 30 days.

Correlation Coefficient

0.7

Parameters

Time Period1 Month [change]
DirectionPositive GOOG Moved Up vs SAP
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents amount of risk that can be diversified away by holding SAP AG and Google Inc. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

SAP AG

  

Risk-adjusted Performance

Over the last 30 days SAP AG has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for S A P

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Google Inc

  

Risk-adjusted Performance

Over the last 30 days Google Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Google

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