Correlation Between AuthID and Global Blue
Can any of the company-specific risk be diversified away by investing in both AuthID and Global Blue 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 AuthID and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between authID Inc and Global Blue Group, you can compare the effects of market volatilities on AuthID and Global Blue 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 AuthID with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuthID and Global Blue.
Diversification Opportunities for AuthID and Global Blue
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between AuthID and Global is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding authID Inc and Global Blue Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blue Group and AuthID 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 authID Inc are associated (or correlated) with Global Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blue Group has no effect on the direction of AuthID i.e., AuthID and Global Blue go up and down completely randomly.
Pair Corralation between AuthID and Global Blue
Given the investment horizon of 90 days authID Inc is expected to under-perform the Global Blue. In addition to that, AuthID is 1.02 times more volatile than Global Blue Group. It trades about -0.22 of its total potential returns per unit of risk. Global Blue Group is currently generating about 0.12 per unit of volatility. If you would invest 559.00 in Global Blue Group on August 31, 2024 and sell it today you would earn a total of 49.00 from holding Global Blue Group or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
authID Inc vs. Global Blue Group
Performance |
| Timeline |
| authID Inc |
| Global Blue Group |
AuthID and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AuthID and Global Blue
The main advantage of trading using opposite AuthID and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuthID position performs unexpectedly, Global Blue 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 Global Blue will offset losses from the drop in Global Blue's long position.| AuthID vs. Datasea | AuthID vs. Priority Technology Holdings | AuthID vs. Fuse Science | AuthID vs. Cerberus Cyber Sentinel |
| Global Blue vs. Aquagold International | Global Blue vs. Thrivent High Yield | Global Blue vs. Morningstar Unconstrained Allocation | Global Blue vs. Via Renewables |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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