Correlation Between Real Matters and SAP SE

Can any of the company-specific risk be diversified away by investing in both Real Matters 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 Real Matters and SAP SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Real Matters and SAP SE

-0.63

Correlation Coefficient

Real Matters  SAP SE

Excellent diversification

The 3 months correlation between Real and SAP is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Real Matters and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE and Real Matters 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 Real Matters 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 Real Matters i.e., Real Matters and SAP SE go up and down completely randomly.

Pair Corralation between Real Matters and SAP SE

Assuming the 90 days horizon Real Matters is expected to generate 2.09 times more return on investment than SAP SE. However, Real Matters is 2.09 times more volatile than SAP SE. It trades about 0.13 of its potential returns per unit of risk. SAP SE is currently generating about -0.12 per unit of risk. If you would invest  412.00  in Real Matters on July 2, 2025 and sell it today you would earn a total of  105.00  from holding Real Matters or generate 25.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Real Matters  vs.  SAP SE

Real Matters

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Real Matters are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting primary indicators, Real Matters reported solid returns over the last few months and may actually be approaching a breakup point.

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 latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Real Matters and SAP SE

The main advantage of trading using opposite Real Matters and SAP SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Matters 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 Real Matters 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 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.