Correlation Analysis Between Coupa Software and XU100

This module allows you to analyze existing cross correlation between Coupa Software Incorporated and XU100. You can compare the effects of market volatilities on Coupa Software and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of Coupa Software and XU100.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 

Coupa Software Incorporated  vs.  XU100

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Coupa Software Incorporated is expected to generate 1.57 times more return on investment than XU100. However, Coupa Software is 1.57 times more volatile than XU100. It trades about 0.18 of its potential returns per unit of risk. XU100 is currently generating about 0.03 per unit of risk. If you would invest  11,894  in Coupa Software Incorporated on July 26, 2019 and sell it today you would earn a total of  2,124  from holding Coupa Software Incorporated or generate 17.86% return on investment over 30 days.

Pair Corralation between Coupa Software and XU100

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Coupa Software and XU100

Coupa Software Incorporated diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Coupa Software Incorporated and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of Coupa Software i.e. Coupa Software and XU100 go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.