Correlation Between Global Blue and Cemtrex
Can any of the company-specific risk be diversified away by investing in both Global Blue and Cemtrex 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 Cemtrex 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 Cemtrex, you can compare the effects of market volatilities on Global Blue and Cemtrex 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 Cemtrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Cemtrex.
Diversification Opportunities for Global Blue and Cemtrex
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Cemtrex is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Cemtrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtrex 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 Cemtrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtrex has no effect on the direction of Global Blue i.e., Global Blue and Cemtrex go up and down completely randomly.
Pair Corralation between Global Blue and Cemtrex
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 0.26 times more return on investment than Cemtrex. However, Global Blue Group is 3.87 times less risky than Cemtrex. It trades about 0.01 of its potential returns per unit of risk. Cemtrex is currently generating about -0.22 per unit of risk. If you would invest 563.00 in Global Blue Group on August 28, 2024 and sell it today you would lose (1.00) from holding Global Blue Group or give up 0.18% 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. Cemtrex
Performance |
| Timeline |
| Global Blue Group |
| Cemtrex |
Global Blue and Cemtrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Cemtrex
The main advantage of trading using opposite Global Blue and Cemtrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Cemtrex 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 Cemtrex will offset losses from the drop in Cemtrex's long position.| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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