This module allows you to analyze existing cross correlation between Coupa Software Incorporated and NIKKEI 225. You can compare the effects of market volatilities on Coupa Software and NIKKEI 225 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 Coupa Software with a short position of NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Coupa Software and NIKKEI 225.
|Horizon||30 Days Login to change|
Predicted Return Density
Coupa Software Incorporated vs. NIKKEI 225
Given the investment horizon of 30 days, Coupa Software Incorporated is expected to generate 1.53 times more return on investment than NIKKEI 225. However, Coupa Software is 1.53 times more volatile than NIKKEI 225. It trades about 0.17 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.03 per unit of risk. If you would invest 12,039 in Coupa Software Incorporated on July 25, 2019 and sell it today you would earn a total of 1,979 from holding Coupa Software Incorporated or generate 16.44% return on investment over 30 days.
Pair Corralation between Coupa Software and NIKKEI 225
|Time Period||2 Months [change]|
Diversification Opportunities for Coupa Software and NIKKEI 225
Overlapping area represents the amount of risk that can be diversified away by holding Coupa Software Incorporated and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 and Coupa Software 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 Coupa Software Incorporated are associated (or correlated) with NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of Coupa Software i.e. Coupa Software and NIKKEI 225 go up and down completely randomly.
See also your portfolio center. Please also try Instant Ratings module to determine any equity ratings based on digital recommendations. macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.