Correlation Between Global Blue and CSG Systems
Can any of the company-specific risk be diversified away by investing in both Global Blue and CSG Systems 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 CSG Systems 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 CSG Systems International, you can compare the effects of market volatilities on Global Blue and CSG Systems 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 CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and CSG Systems.
Diversification Opportunities for Global Blue and CSG Systems
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and CSG is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International 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 CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of Global Blue i.e., Global Blue and CSG Systems go up and down completely randomly.
Pair Corralation between Global Blue and CSG Systems
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.88 times more return on investment than CSG Systems. However, Global Blue is 1.88 times more volatile than CSG Systems International. It trades about 0.04 of its potential returns per unit of risk. CSG Systems International is currently generating about 0.01 per unit of risk. If you would invest 415.00 in Global Blue Group on August 26, 2024 and sell it today you would earn a total of 181.00 from holding Global Blue Group or generate 43.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. CSG Systems International
Performance |
| Timeline |
| Global Blue Group |
| CSG Systems International |
Global Blue and CSG Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and CSG Systems
The main advantage of trading using opposite Global Blue and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, CSG Systems 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 CSG Systems will offset losses from the drop in CSG Systems' long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| CSG Systems vs. Oneconnect Financial Technology | CSG Systems vs. Global Business Travel | CSG Systems vs. Alight Inc | CSG Systems vs. CS Disco LLC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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