Correlation Between Global Blue and Data Call
Can any of the company-specific risk be diversified away by investing in both Global Blue and Data Call 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 Data Call 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 Data Call Technologi, you can compare the effects of market volatilities on Global Blue and Data Call 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 Data Call. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Data Call.
Diversification Opportunities for Global Blue and Data Call
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Data is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Data Call Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Call Technologi 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 Data Call. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Call Technologi has no effect on the direction of Global Blue i.e., Global Blue and Data Call go up and down completely randomly.
Pair Corralation between Global Blue and Data Call
Allowing for the 90-day total investment horizon Global Blue is expected to generate 8.75 times less return on investment than Data Call. But when comparing it to its historical volatility, Global Blue Group is 5.67 times less risky than Data Call. It trades about 0.04 of its potential returns per unit of risk. Data Call Technologi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.26 in Data Call Technologi on September 3, 2024 and sell it today you would lose (0.15) from holding Data Call Technologi or give up 57.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Data Call Technologi
Performance |
| Timeline |
| Global Blue Group |
| Data Call Technologi |
Global Blue and Data Call Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Data Call
The main advantage of trading using opposite Global Blue and Data Call positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Data Call 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 Data Call will offset losses from the drop in Data Call's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Data Call vs. Fuse Science | Data Call vs. Data443 Risk Mitigation | Data Call vs. Smartmetric | Data Call vs. Zerify Inc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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