Correlation Analysis Between S A P and VMware

This module allows you to analyze existing cross correlation between SAP SE and VMware. You can compare the effects of market volatilities on S A P and VMware 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 VMware. See also your portfolio center. Please also check ongoing floating volatility patterns of S A P and VMware.
 Time Horizon     30 Days    Login   to change
Symbolsvs

SAP SE  vs.  VMware Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, SAP SE is expected to generate 0.67 times more return on investment than VMware. However, SAP SE is 1.49 times less risky than VMware. It trades about 0.35 of its potential returns per unit of risk. VMware is currently generating about 0.05 per unit of risk. If you would invest  10,598  in SAP SE on April 23, 2018 and sell it today you would earn a total of  713.00  from holding SAP SE or generate 6.73% return on investment over 30 days.

Pair Corralation between S A P and VMware

0.71
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
SAP SE  
22 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in SAP SE are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.
VMware  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VMware are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1066.36

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