Correlation Between Global Blue and Flywire Corp
Can any of the company-specific risk be diversified away by investing in both Global Blue and Flywire Corp 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 Flywire Corp 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 Flywire Corp, you can compare the effects of market volatilities on Global Blue and Flywire Corp 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 Flywire Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Flywire Corp.
Diversification Opportunities for Global Blue and Flywire Corp
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Flywire is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Flywire Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flywire Corp 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 Flywire Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flywire Corp has no effect on the direction of Global Blue i.e., Global Blue and Flywire Corp go up and down completely randomly.
Pair Corralation between Global Blue and Flywire Corp
Allowing for the 90-day total investment horizon Global Blue is expected to generate 28.24 times less return on investment than Flywire Corp. But when comparing it to its historical volatility, Global Blue Group is 1.16 times less risky than Flywire Corp. It trades about 0.01 of its potential returns per unit of risk. Flywire Corp is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,717 in Flywire Corp on August 28, 2024 and sell it today you would earn a total of 578.00 from holding Flywire Corp or generate 33.66% 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. Flywire Corp
Performance |
| Timeline |
| Global Blue Group |
| Flywire Corp |
Global Blue and Flywire Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Flywire Corp
The main advantage of trading using opposite Global Blue and Flywire Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Flywire Corp 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 Flywire Corp will offset losses from the drop in Flywire Corp's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Flywire Corp vs. SentinelOne | Flywire Corp vs. BlackBerry | Flywire Corp vs. Global Blue Group | Flywire Corp vs. Aurora Mobile |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |