Correlation Between Global Blue and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Global Blue and Lesaka Technologies 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 Lesaka Technologies 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 Lesaka Technologies, you can compare the effects of market volatilities on Global Blue and Lesaka Technologies 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 Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Lesaka Technologies.
Diversification Opportunities for Global Blue and Lesaka Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Lesaka is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies 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 Lesaka Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesaka Technologies has no effect on the direction of Global Blue i.e., Global Blue and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Global Blue and Lesaka Technologies
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.3 times more return on investment than Lesaka Technologies. However, Global Blue is 1.3 times more volatile than Lesaka Technologies. It trades about -0.02 of its potential returns per unit of risk. Lesaka Technologies is currently generating about -0.34 per unit of risk. If you would invest 718.00 in Global Blue Group on November 2, 2024 and sell it today you would lose (11.00) from holding Global Blue Group or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Lesaka Technologies
Performance |
| Timeline |
| Global Blue Group |
| Lesaka Technologies |
Global Blue and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Lesaka Technologies
The main advantage of trading using opposite Global Blue and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Lesaka Technologies 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 Lesaka Technologies will offset losses from the drop in Lesaka Technologies' long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Lesaka Technologies vs. Priority Technology Holdings | Lesaka Technologies vs. CSG Systems International | Lesaka Technologies vs. OneSpan | Lesaka Technologies vs. Sangoma Technologies Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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