Correlation Between Global Blue and GigaCloud Technology
Can any of the company-specific risk be diversified away by investing in both Global Blue and GigaCloud Technology 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 GigaCloud Technology 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 GigaCloud Technology Class, you can compare the effects of market volatilities on Global Blue and GigaCloud Technology 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 GigaCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and GigaCloud Technology.
Diversification Opportunities for Global Blue and GigaCloud Technology
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and GigaCloud is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and GigaCloud Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaCloud Technology 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 GigaCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaCloud Technology has no effect on the direction of Global Blue i.e., Global Blue and GigaCloud Technology go up and down completely randomly.
Pair Corralation between Global Blue and GigaCloud Technology
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 0.94 times more return on investment than GigaCloud Technology. However, Global Blue Group is 1.06 times less risky than GigaCloud Technology. It trades about 0.12 of its potential returns per unit of risk. GigaCloud Technology Class is currently generating about -0.08 per unit of risk. If you would invest 551.00 in Global Blue Group on September 13, 2024 and sell it today you would earn a total of 56.00 from holding Global Blue Group or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. GigaCloud Technology Class
Performance |
| Timeline |
| Global Blue Group |
| GigaCloud Technology |
Global Blue and GigaCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and GigaCloud Technology
The main advantage of trading using opposite Global Blue and GigaCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, GigaCloud Technology 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 GigaCloud Technology will offset losses from the drop in GigaCloud Technology's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |