Correlation Between Mobilezone Holding and S A P

Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding 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 Mobilezone Holding 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 Mobilezone Holding AG and SAP SE, you can compare the effects of market volatilities on Mobilezone Holding 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 Mobilezone Holding with a short position of S A P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and S A P.

Diversification Opportunities for Mobilezone Holding and S A P

0.83

Correlation Coefficient

Mobilezone Holding  S A P

Very poor diversification

The 3 months correlation between Mobilezone and SAP is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE and Mobilezone Holding 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 Mobilezone Holding AG 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 has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and S A P go up and down completely randomly.

Pair Corralation between Mobilezone Holding and S A P

Assuming the 90 days trading horizon Mobilezone Holding AG is expected to generate 2.59 times more return on investment than S A P. However, Mobilezone Holding is 2.59 times more volatile than SAP SE. It trades about 0.12 of its potential returns per unit of risk. SAP SE is currently generating about 0.18 per unit of risk. If you would invest  889.00  in Mobilezone Holding AG on April 20, 2025 and sell it today you would earn a total of  307.00  from holding Mobilezone Holding AG or generate 34.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Mobilezone Holding AG  vs.  SAP SE

Mobilezone Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobilezone Holding AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Mobilezone Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

SAP SE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SAP SE are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, S A P unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobilezone Holding and S A P

The main advantage of trading using opposite Mobilezone Holding and S A P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding 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 Mobilezone Holding AG 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.