This module allows you to analyze existing cross correlation between SAP SE and Alphabet Inc. You can compare the effects of market volatilities on S A P and Alphabet 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 Alphabet. See also your portfolio center
. Please also check ongoing floating volatility patterns of S A P
SAP SE vs Alphabet Inc
Considering 30-days investment horizon, SAP SE is expected to under-perform the Alphabet. But the stock apears to be less risky and, when comparing its historical volatility, SAP SE is 1.24 times less risky than Alphabet. The stock trades about -0.19 of its potential returns per unit of risk. The Alphabet Inc is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 115,581 in Alphabet Inc on January 20, 2018 and sell it today you would lose (6,101) from holding Alphabet Inc or give up 5.28% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding SAP SE and Alphabet Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Inc and S A P 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 Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Inc has no effect on the direction of S A P i.e. S A P and Alphabet go up and down completely randomly.
Over the last 30 days SAP SE has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Alphabet Inc has generated negative risk-adjusted returns adding no value to investors with long positions.