Correlation Between Global Blue and Cellebrite
Can any of the company-specific risk be diversified away by investing in both Global Blue and Cellebrite 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 Cellebrite 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 Cellebrite DI, you can compare the effects of market volatilities on Global Blue and Cellebrite 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 Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Cellebrite.
Diversification Opportunities for Global Blue and Cellebrite
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Cellebrite is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Cellebrite DI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI 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 Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI has no effect on the direction of Global Blue i.e., Global Blue and Cellebrite go up and down completely randomly.
Pair Corralation between Global Blue and Cellebrite
Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.25 times less return on investment than Cellebrite. In addition to that, Global Blue is 1.38 times more volatile than Cellebrite DI. It trades about 0.12 of its total potential returns per unit of risk. Cellebrite DI is currently generating about 0.21 per unit of volatility. If you would invest 1,668 in Cellebrite DI on November 1, 2024 and sell it today you would earn a total of 728.00 from holding Cellebrite DI or generate 43.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Cellebrite DI
Performance |
| Timeline |
| Global Blue Group |
| Cellebrite DI |
Global Blue and Cellebrite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Cellebrite
The main advantage of trading using opposite Global Blue and Cellebrite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Cellebrite 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 Cellebrite will offset losses from the drop in Cellebrite's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Cellebrite vs. CSG Systems International | Cellebrite vs. Consensus Cloud Solutions | Cellebrite vs. Secureworks Corp | Cellebrite vs. Evertec |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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