Correlation Between Global Blue and Guardforce
Can any of the company-specific risk be diversified away by investing in both Global Blue and Guardforce 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 Guardforce 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 Guardforce AI Co, you can compare the effects of market volatilities on Global Blue and Guardforce 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 Guardforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Guardforce.
Diversification Opportunities for Global Blue and Guardforce
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Guardforce is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Guardforce AI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardforce AI 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 Guardforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardforce AI has no effect on the direction of Global Blue i.e., Global Blue and Guardforce go up and down completely randomly.
Pair Corralation between Global Blue and Guardforce
Allowing for the 90-day total investment horizon Global Blue is expected to generate 2.58 times less return on investment than Guardforce. But when comparing it to its historical volatility, Global Blue Group is 1.54 times less risky than Guardforce. It trades about 0.1 of its potential returns per unit of risk. Guardforce AI Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Guardforce AI Co on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Guardforce AI Co or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Guardforce AI Co
Performance |
| Timeline |
| Global Blue Group |
| Guardforce AI |
Global Blue and Guardforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Guardforce
The main advantage of trading using opposite Global Blue and Guardforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Guardforce 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 Guardforce will offset losses from the drop in Guardforce's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Guardforce vs. Iveda Solutions | Guardforce vs. Bridger Aerospace Group | Guardforce vs. Supercom | Guardforce vs. Guardforce AI Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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