Correlation Between Global Blue and F5 Networks
Can any of the company-specific risk be diversified away by investing in both Global Blue and F5 Networks 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 F5 Networks 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 F5 Networks, you can compare the effects of market volatilities on Global Blue and F5 Networks 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 F5 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and F5 Networks.
Diversification Opportunities for Global Blue and F5 Networks
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and FFIV is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and F5 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F5 Networks 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 F5 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F5 Networks has no effect on the direction of Global Blue i.e., Global Blue and F5 Networks go up and down completely randomly.
Pair Corralation between Global Blue and F5 Networks
Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.46 times less return on investment than F5 Networks. In addition to that, Global Blue is 1.39 times more volatile than F5 Networks. It trades about 0.13 of its total potential returns per unit of risk. F5 Networks is currently generating about 0.26 per unit of volatility. If you would invest 21,687 in F5 Networks on August 26, 2024 and sell it today you would earn a total of 3,011 from holding F5 Networks or generate 13.88% 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. F5 Networks
Performance |
| Timeline |
| Global Blue Group |
| F5 Networks |
Global Blue and F5 Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and F5 Networks
The main advantage of trading using opposite Global Blue and F5 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, F5 Networks 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 F5 Networks will offset losses from the drop in F5 Networks' long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| F5 Networks vs. VeriSign | F5 Networks vs. Check Point Software | F5 Networks vs. Qualys Inc | F5 Networks vs. CyberArk Software |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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