Correlation Between Global Blue and New Relic
Can any of the company-specific risk be diversified away by investing in both Global Blue and New Relic 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 New Relic 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 New Relic, you can compare the effects of market volatilities on Global Blue and New Relic 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 New Relic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and New Relic.
Diversification Opportunities for Global Blue and New Relic
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and New is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and New Relic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Relic 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 New Relic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Relic has no effect on the direction of Global Blue i.e., Global Blue and New Relic go up and down completely randomly.
Pair Corralation between Global Blue and New Relic
If you would invest 486.00 in Global Blue Group on August 31, 2024 and sell it today you would earn a total of 129.00 from holding Global Blue Group or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Global Blue Group vs. New Relic
Performance |
| Timeline |
| Global Blue Group |
| New Relic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Blue and New Relic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and New Relic
The main advantage of trading using opposite Global Blue and New Relic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, New Relic 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 New Relic will offset losses from the drop in New Relic's long position.| Global Blue vs. Aquagold International | Global Blue vs. Thrivent High Yield | Global Blue vs. Morningstar Unconstrained Allocation | Global Blue vs. Via Renewables |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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