Correlation Between Datasea and Global Blue
Can any of the company-specific risk be diversified away by investing in both Datasea 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 Datasea and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datasea and Global Blue Group, you can compare the effects of market volatilities on Datasea 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 Datasea with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datasea and Global Blue.
Diversification Opportunities for Datasea and Global Blue
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Datasea and Global is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Datasea 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 Datasea 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 Datasea 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 Datasea i.e., Datasea and Global Blue go up and down completely randomly.
Pair Corralation between Datasea and Global Blue
Given the investment horizon of 90 days Datasea is expected to under-perform the Global Blue. In addition to that, Datasea is 1.24 times more volatile than Global Blue Group. It trades about -0.21 of its total potential returns per unit of risk. Global Blue Group is currently generating about -0.02 per unit of volatility. If you would invest 718.00 in Global Blue Group on November 2, 2024 and sell it today you would lose (11.00) from holding Global Blue Group or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datasea vs. Global Blue Group
Performance |
| Timeline |
| Datasea |
| Global Blue Group |
Datasea and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datasea and Global Blue
The main advantage of trading using opposite Datasea and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datasea 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.| Datasea vs. authID Inc | Datasea vs. Priority Technology Holdings | Datasea vs. Fuse Science | Datasea vs. Taoping |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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