Correlation Between Cerberus Cyber and Global Blue
Can any of the company-specific risk be diversified away by investing in both Cerberus Cyber 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 Cerberus Cyber and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerberus Cyber Sentinel and Global Blue Group, you can compare the effects of market volatilities on Cerberus Cyber 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 Cerberus Cyber with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerberus Cyber and Global Blue.
Diversification Opportunities for Cerberus Cyber and Global Blue
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cerberus and Global is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cerberus Cyber Sentinel 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 Cerberus Cyber 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 Cerberus Cyber Sentinel 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 Cerberus Cyber i.e., Cerberus Cyber and Global Blue go up and down completely randomly.
Pair Corralation between Cerberus Cyber and Global Blue
Given the investment horizon of 90 days Cerberus Cyber Sentinel is expected to generate 1.74 times more return on investment than Global Blue. However, Cerberus Cyber is 1.74 times more volatile than Global Blue Group. It trades about 0.39 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.12 per unit of risk. If you would invest 80.00 in Cerberus Cyber Sentinel on August 31, 2024 and sell it today you would earn a total of 54.00 from holding Cerberus Cyber Sentinel or generate 67.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cerberus Cyber Sentinel vs. Global Blue Group
Performance |
| Timeline |
| Cerberus Cyber Sentinel |
| Global Blue Group |
Cerberus Cyber and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerberus Cyber and Global Blue
The main advantage of trading using opposite Cerberus Cyber and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerberus Cyber 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.| Cerberus Cyber vs. Aquagold International | Cerberus Cyber vs. Thrivent High Yield | Cerberus Cyber vs. Morningstar Unconstrained Allocation | Cerberus Cyber vs. Via Renewables |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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