Correlation Between Global Blue and Apptech Corp
Can any of the company-specific risk be diversified away by investing in both Global Blue and Apptech Corp 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 Apptech Corp 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 Apptech Corp, you can compare the effects of market volatilities on Global Blue and Apptech Corp 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 Apptech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Apptech Corp.
Diversification Opportunities for Global Blue and Apptech Corp
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Apptech is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp 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 Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of Global Blue i.e., Global Blue and Apptech Corp go up and down completely randomly.
Pair Corralation between Global Blue and Apptech Corp
Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.52 times less return on investment than Apptech Corp. But when comparing it to its historical volatility, Global Blue Group is 2.39 times less risky than Apptech Corp. It trades about 0.04 of its potential returns per unit of risk. Apptech Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Apptech Corp on August 24, 2024 and sell it today you would lose (48.00) from holding Apptech Corp or give up 48.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Apptech Corp
Performance |
| Timeline |
| Global Blue Group |
| Apptech Corp |
Global Blue and Apptech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Apptech Corp
The main advantage of trading using opposite Global Blue and Apptech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Apptech Corp 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 Apptech Corp will offset losses from the drop in Apptech Corp's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Apptech Corp vs. Palo Alto Networks | Apptech Corp vs. Uipath Inc | Apptech Corp vs. Block Inc | Apptech Corp vs. Adobe Systems Incorporated |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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