Correlation Between Global Blue and Altair Engineering
Can any of the company-specific risk be diversified away by investing in both Global Blue and Altair Engineering 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 Global Blue and Altair Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Blue Group and Altair Engineering, you can compare the effects of market volatilities on Global Blue and Altair Engineering 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 Global Blue with a short position of Altair Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Altair Engineering.
Diversification Opportunities for Global Blue and Altair Engineering
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Altair is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Altair Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering and Global Blue 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 Global Blue Group are associated (or correlated) with Altair Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Engineering has no effect on the direction of Global Blue i.e., Global Blue and Altair Engineering go up and down completely randomly.
Pair Corralation between Global Blue and Altair Engineering
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 5.19 times more return on investment than Altair Engineering. However, Global Blue is 5.19 times more volatile than Altair Engineering. It trades about 0.22 of its potential returns per unit of risk. Altair Engineering is currently generating about 0.25 per unit of risk. If you would invest 567.00 in Global Blue Group on November 3, 2024 and sell it today you would earn a total of 127.00 from holding Global Blue Group or generate 22.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Altair Engineering
Performance |
| Timeline |
| Global Blue Group |
| Altair Engineering |
Global Blue and Altair Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Altair Engineering
The main advantage of trading using opposite Global Blue and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Altair Engineering 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 Altair Engineering will offset losses from the drop in Altair Engineering's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Altair Engineering vs. Global Blue Group | Altair Engineering vs. EverCommerce | Altair Engineering vs. CSG Systems International | Altair Engineering vs. Consensus Cloud Solutions |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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