Correlation Between SAP SE and AnalytixInsight

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

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

Diversification Opportunities for SAP SE and AnalytixInsight

0.0

Correlation Coefficient

SAP SE  AnalytixInsight

Pay attention - limited upside

The 3 months correlation between SAP and AnalytixInsight is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE and AnalytixInsight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnalytixInsight and SAP SE 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 SAP SE are associated (or correlated) with AnalytixInsight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnalytixInsight has no effect on the direction of SAP SE i.e., SAP SE and AnalytixInsight go up and down completely randomly.

Pair Corralation between SAP SE and AnalytixInsight

If you would invest  2.80  in AnalytixInsight on May 4, 2025 and sell it today you would earn a total of  0.00  from holding AnalytixInsight or generate 0.0% return on investment over 90 days.

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

SAP SE  vs.  AnalytixInsight

SAP SE

Risk-Adjusted Performance

Very Weak

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.

AnalytixInsight

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SAP SE and AnalytixInsight

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

The idea behind SAP SE and AnalytixInsight 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.