Correlation Between ForgeRock and Global Blue
Can any of the company-specific risk be diversified away by investing in both ForgeRock 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 ForgeRock and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ForgeRock and Global Blue Group, you can compare the effects of market volatilities on ForgeRock 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 ForgeRock with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of ForgeRock and Global Blue.
Diversification Opportunities for ForgeRock and Global Blue
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between ForgeRock and Global is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ForgeRock 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 ForgeRock 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 ForgeRock 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 ForgeRock i.e., ForgeRock and Global Blue go up and down completely randomly.
Pair Corralation between ForgeRock and Global Blue
If you would invest 471.00 in Global Blue Group on August 27, 2024 and sell it today you would earn a total of 125.00 from holding Global Blue Group or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.53% |
| Values | Daily Returns |
ForgeRock vs. Global Blue Group
Performance |
| Timeline |
| ForgeRock |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Blue Group |
ForgeRock and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ForgeRock and Global Blue
The main advantage of trading using opposite ForgeRock and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ForgeRock 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.| ForgeRock vs. NetScout Systems | ForgeRock vs. Consensus Cloud Solutions | ForgeRock vs. CSG Systems International | ForgeRock vs. Evertec |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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