Correlation Between Global Blue and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both Global Blue and Maxeon Solar 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 Maxeon Solar 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 Maxeon Solar Technologies, you can compare the effects of market volatilities on Global Blue and Maxeon Solar 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 Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Maxeon Solar.
Diversification Opportunities for Global Blue and Maxeon Solar
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Maxeon is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar 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 Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of Global Blue i.e., Global Blue and Maxeon Solar go up and down completely randomly.
Pair Corralation between Global Blue and Maxeon Solar
Allowing for the 90-day total investment horizon Global Blue is expected to generate 5.78 times less return on investment than Maxeon Solar. But when comparing it to its historical volatility, Global Blue Group is 4.3 times less risky than Maxeon Solar. It trades about 0.15 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Maxeon Solar Technologies on August 24, 2024 and sell it today you would earn a total of 300.00 from holding Maxeon Solar Technologies or generate 57.69% 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. Maxeon Solar Technologies
Performance |
| Timeline |
| Global Blue Group |
| Maxeon Solar Technologies |
Global Blue and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Maxeon Solar
The main advantage of trading using opposite Global Blue and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Maxeon Solar 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 Maxeon Solar will offset losses from the drop in Maxeon Solar's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Maxeon Solar vs. Sunrun Inc | Maxeon Solar vs. Canadian Solar | Maxeon Solar vs. First Solar | Maxeon Solar vs. Sunnova Energy International |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |