Correlation Between Global Blue and Gitlab

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Can any of the company-specific risk be diversified away by investing in both Global Blue and Gitlab 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 Gitlab 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 Gitlab Inc, you can compare the effects of market volatilities on Global Blue and Gitlab 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 Gitlab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Gitlab.

Diversification Opportunities for Global Blue and Gitlab

GlobalGitlabDiversified AwayGlobalGitlabDiversified Away100%
0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Global and Gitlab is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Gitlab Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gitlab Inc 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 Gitlab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gitlab Inc has no effect on the direction of Global Blue i.e., Global Blue and Gitlab go up and down completely randomly.

Pair Corralation between Global Blue and Gitlab

Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.23 times more return on investment than Gitlab. However, Global Blue is 1.23 times more volatile than Gitlab Inc. It trades about 0.13 of its potential returns per unit of risk. Gitlab Inc is currently generating about 0.09 per unit of risk. If you would invest  549.00  in Global Blue Group on September 25, 2024 and sell it today you would earn a total of  96.00  from holding Global Blue Group or generate 17.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Global Blue Group  vs.  Gitlab Inc

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -5051015202530
JavaScript chart by amCharts 3.21.15GB GTLB
       Timeline  
Global Blue Group 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Global Blue Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, Global Blue sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec55.25.45.65.866.26.4
Gitlab Inc 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Gitlab Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting essential indicators, Gitlab sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec5055606570

Global Blue and Gitlab Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.8-7.34-4.88-2.420.02.495.077.6510.2312.81 0.020.030.040.05
JavaScript chart by amCharts 3.21.15GB GTLB
       Returns  

Pair Trading with Global Blue and Gitlab

The main advantage of trading using opposite Global Blue and Gitlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Gitlab 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 Gitlab will offset losses from the drop in Gitlab's long position.
The idea behind Global Blue Group and Gitlab Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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