Correlation Between Mint Incorporation and S A P

Can any of the company-specific risk be diversified away by investing in both Mint Incorporation and S A P 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 Mint Incorporation and S A P into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Mint Incorporation and S A P

-0.31

Correlation Coefficient

Mint Incorporation  S A P

Very good diversification

The 3 months correlation between Mint and SAP is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mint Incorp. Limited and SAP SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE ADR and Mint Incorporation 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 Mint Incorporation Limited are associated (or correlated) with S A P. 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 ADR has no effect on the direction of Mint Incorporation i.e., Mint Incorporation and S A P go up and down completely randomly.

Pair Corralation between Mint Incorporation and S A P

Given the investment horizon of 90 days Mint Incorporation Limited is expected to generate 3.05 times more return on investment than S A P. However, Mint Incorporation is 3.05 times more volatile than SAP SE ADR. It trades about 0.31 of its potential returns per unit of risk. SAP SE ADR is currently generating about 0.0 per unit of risk. If you would invest  462.00  in Mint Incorporation Limited on May 12, 2025 and sell it today you would earn a total of  532.00  from holding Mint Incorporation Limited or generate 115.15% return on investment over 90 days.

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

Mint Incorp. Limited  vs.  SAP SE ADR

Mint Incorporation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mint Incorporation Limited are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent primary indicators, Mint Incorporation demonstrated solid returns over the last few months and may actually be approaching a breakup point.

SAP SE ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days SAP SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, S A P is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Mint Incorporation and S A P

The main advantage of trading using opposite Mint Incorporation and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mint Incorporation position performs unexpectedly, S A P 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 S A P will offset losses from the drop in S A P's long position.

The idea behind Mint Incorporation Limited and SAP SE ADR 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.