Correlation Between Global Blue and FLT Old
Can any of the company-specific risk be diversified away by investing in both Global Blue and FLT Old 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 FLT Old 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 FLT Old, you can compare the effects of market volatilities on Global Blue and FLT Old 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 FLT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and FLT Old.
Diversification Opportunities for Global Blue and FLT Old
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and FLT is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and FLT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLT Old 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 FLT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLT Old has no effect on the direction of Global Blue i.e., Global Blue and FLT Old go up and down completely randomly.
Pair Corralation between Global Blue and FLT Old
Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.47 times less return on investment than FLT Old. In addition to that, Global Blue is 1.9 times more volatile than FLT Old. It trades about 0.02 of its total potential returns per unit of risk. FLT Old is currently generating about 0.06 per unit of volatility. If you would invest 20,101 in FLT Old on October 20, 2024 and sell it today you would earn a total of 6,692 from holding FLT Old or generate 33.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.47% |
| Values | Daily Returns |
Global Blue Group vs. FLT Old
Performance |
| Timeline |
| Global Blue Group |
| FLT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Blue and FLT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and FLT Old
The main advantage of trading using opposite Global Blue and FLT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, FLT Old 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 FLT Old will offset losses from the drop in FLT Old's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| FLT Old vs. Reservoir Media | FLT Old vs. The Cheesecake Factory | FLT Old vs. Starbucks | FLT Old vs. Playtika Holding Corp |
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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