Correlation Between Global Blue and AuthID
Can any of the company-specific risk be diversified away by investing in both Global Blue and AuthID 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 AuthID 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 authID Inc, you can compare the effects of market volatilities on Global Blue and AuthID 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 AuthID. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and AuthID.
Diversification Opportunities for Global Blue and AuthID
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and AuthID is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and authID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on authID Inc 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 AuthID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of authID Inc has no effect on the direction of Global Blue i.e., Global Blue and AuthID go up and down completely randomly.
Pair Corralation between Global Blue and AuthID
Allowing for the 90-day total investment horizon Global Blue Group is expected to under-perform the AuthID. But the stock apears to be less risky and, when comparing its historical volatility, Global Blue Group is 1.81 times less risky than AuthID. The stock trades about -0.02 of its potential returns per unit of risk. The authID Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 566.00 in authID Inc on November 2, 2024 and sell it today you would earn a total of 64.00 from holding authID Inc or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. authID Inc
Performance |
| Timeline |
| Global Blue Group |
| authID Inc |
Global Blue and AuthID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and AuthID
The main advantage of trading using opposite Global Blue and AuthID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, AuthID 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 AuthID will offset losses from the drop in AuthID's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| AuthID vs. Datasea | AuthID vs. Priority Technology Holdings | AuthID vs. Fuse Science | AuthID vs. Cerberus Cyber Sentinel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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