Correlation Between CSG Systems and Global Blue
Can any of the company-specific risk be diversified away by investing in both CSG Systems 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 CSG Systems and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSG Systems International and Global Blue Group, you can compare the effects of market volatilities on CSG Systems 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 CSG Systems with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Global Blue.
Diversification Opportunities for CSG Systems and Global Blue
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSG and Global is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International 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 CSG Systems 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 CSG Systems International 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 CSG Systems i.e., CSG Systems and Global Blue go up and down completely randomly.
Pair Corralation between CSG Systems and Global Blue
Given the investment horizon of 90 days CSG Systems is expected to generate 1.15 times less return on investment than Global Blue. But when comparing it to its historical volatility, CSG Systems International is 2.25 times less risky than Global Blue. It trades about 0.21 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Global Blue Group on November 18, 2024 and sell it today you would earn a total of 108.00 from holding Global Blue Group or generate 19.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. Global Blue Group
Performance |
| Timeline |
| CSG Systems International |
| Global Blue Group |
CSG Systems and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and Global Blue
The main advantage of trading using opposite CSG Systems and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems 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.| CSG Systems vs. NetScout Systems | CSG Systems vs. Consensus Cloud Solutions | CSG Systems vs. Evertec | CSG Systems vs. Lesaka Technologies |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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