Correlation Between Amdocs and Global Blue
Can any of the company-specific risk be diversified away by investing in both Amdocs 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 Amdocs and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amdocs and Global Blue Group, you can compare the effects of market volatilities on Amdocs 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 Amdocs with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amdocs and Global Blue.
Diversification Opportunities for Amdocs and Global Blue
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amdocs and Global is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Amdocs 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 Amdocs 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 Amdocs 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 Amdocs i.e., Amdocs and Global Blue go up and down completely randomly.
Pair Corralation between Amdocs and Global Blue
Considering the 90-day investment horizon Amdocs is expected to generate 4.98 times less return on investment than Global Blue. But when comparing it to its historical volatility, Amdocs is 4.91 times less risky than Global Blue. It trades about 0.18 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Global Blue Group on September 18, 2024 and sell it today you would earn a total of 91.00 from holding Global Blue Group or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amdocs vs. Global Blue Group
Performance |
| Timeline |
| Amdocs |
| Global Blue Group |
Amdocs and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amdocs and Global Blue
The main advantage of trading using opposite Amdocs and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amdocs 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.The idea behind Amdocs and Global Blue Group 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.| Global Blue vs. Evertec | Global Blue vs. NetScout Systems | Global Blue vs. CSG Systems International | Global Blue vs. Tenable Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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