Correlation Between Global Blue and Cognyte Software
Can any of the company-specific risk be diversified away by investing in both Global Blue and Cognyte Software 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 Cognyte Software 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 Cognyte Software, you can compare the effects of market volatilities on Global Blue and Cognyte Software 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 Cognyte Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Cognyte Software.
Diversification Opportunities for Global Blue and Cognyte Software
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Cognyte is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Cognyte Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognyte Software 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 Cognyte Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cognyte Software has no effect on the direction of Global Blue i.e., Global Blue and Cognyte Software go up and down completely randomly.
Pair Corralation between Global Blue and Cognyte Software
Allowing for the 90-day total investment horizon Global Blue is expected to generate 2.68 times less return on investment than Cognyte Software. In addition to that, Global Blue is 1.02 times more volatile than Cognyte Software. It trades about 0.1 of its total potential returns per unit of risk. Cognyte Software is currently generating about 0.26 per unit of volatility. If you would invest 670.00 in Cognyte Software on August 27, 2024 and sell it today you would earn a total of 125.00 from holding Cognyte Software or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Cognyte Software
Performance |
| Timeline |
| Global Blue Group |
| Cognyte Software |
Global Blue and Cognyte Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Cognyte Software
The main advantage of trading using opposite Global Blue and Cognyte Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Cognyte Software 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 Cognyte Software will offset losses from the drop in Cognyte Software's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Cognyte Software vs. GigaCloud Technology Class | Cognyte Software vs. Arqit Quantum | Cognyte Software vs. Telos Corp | Cognyte Software vs. Cemtrex |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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