Correlation Between Global Blue and ForgeRock
Can any of the company-specific risk be diversified away by investing in both Global Blue and ForgeRock 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 ForgeRock 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 ForgeRock, you can compare the effects of market volatilities on Global Blue and ForgeRock 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 ForgeRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and ForgeRock.
Diversification Opportunities for Global Blue and ForgeRock
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and ForgeRock is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and ForgeRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ForgeRock 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 ForgeRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ForgeRock has no effect on the direction of Global Blue i.e., Global Blue and ForgeRock go up and down completely randomly.
Pair Corralation between Global Blue and ForgeRock
If you would invest 471.00 in Global Blue Group on August 27, 2024 and sell it today you would earn a total of 125.00 from holding Global Blue Group or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.53% |
| Values | Daily Returns |
Global Blue Group vs. ForgeRock
Performance |
| Timeline |
| Global Blue Group |
| ForgeRock |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Blue and ForgeRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and ForgeRock
The main advantage of trading using opposite Global Blue and ForgeRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, ForgeRock 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 ForgeRock will offset losses from the drop in ForgeRock's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| ForgeRock vs. NetScout Systems | ForgeRock vs. Consensus Cloud Solutions | ForgeRock vs. CSG Systems International | ForgeRock vs. Evertec |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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