Correlation Between Capgemini and SAP SE

Can any of the company-specific risk be diversified away by investing in both Capgemini and SAP SE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Capgemini and SAP SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Capgemini SE and SAP SE, you can compare the effects of market volatilities on Capgemini and SAP SE 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 Capgemini with a short position of SAP SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and SAP SE.

Diversification Opportunities for Capgemini and SAP SE

0.46

Correlation Coefficient

Capgemini  SAP SE

Very weak diversification

The 3 months correlation between Capgemini and SAP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE and Capgemini 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 Capgemini SE are associated (or correlated) with SAP SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of Capgemini i.e., Capgemini and SAP SE go up and down completely randomly.

Pair Corralation between Capgemini and SAP SE

Assuming the 90 days horizon Capgemini SE is expected to under-perform the SAP SE. In addition to that, Capgemini is 1.63 times more volatile than SAP SE. It trades about -0.08 of its total potential returns per unit of risk. SAP SE is currently generating about 0.0 per unit of volatility. If you would invest  29,387  in SAP SE on May 10, 2025 and sell it today you would lose (87.00) from holding SAP SE or give up 0.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Capgemini SE  vs.  SAP SE

Capgemini SE

Risk-Adjusted Performance

Weakest

Over the last 90 days Capgemini SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's primary indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

SAP SE

Risk-Adjusted Performance

Weakest

Over the last 90 days SAP SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, SAP SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Capgemini and SAP SE

The main advantage of trading using opposite Capgemini and SAP SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capgemini position performs unexpectedly, SAP SE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SAP SE will offset losses from the drop in SAP SE's long position.

The idea behind Capgemini SE and SAP SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.