Correlation Between Check Point and Global Blue
Can any of the company-specific risk be diversified away by investing in both Check Point 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 Check Point and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Point Software and Global Blue Group, you can compare the effects of market volatilities on Check Point 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 Check Point with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and Global Blue.
Diversification Opportunities for Check Point and Global Blue
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Check and Global is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software 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 Check Point 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 Check Point Software 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 Check Point i.e., Check Point and Global Blue go up and down completely randomly.
Pair Corralation between Check Point and Global Blue
Given the investment horizon of 90 days Check Point is expected to generate 1.25 times less return on investment than Global Blue. But when comparing it to its historical volatility, Check Point Software is 1.91 times less risky than Global Blue. It trades about 0.08 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Global Blue Group on November 9, 2024 and sell it today you would earn a total of 167.00 from holding Global Blue Group or generate 35.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Check Point Software vs. Global Blue Group
Performance |
| Timeline |
| Check Point Software |
| Global Blue Group |
Check Point and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Point and Global Blue
The main advantage of trading using opposite Check Point and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Point 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.| Check Point vs. Rapid7 Inc | Check Point vs. Tenable Holdings | Check Point vs. Okta Inc | Check Point vs. WixCom |
| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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