Correlation Between Global Blue and ON Semiconductor
Can any of the company-specific risk be diversified away by investing in both Global Blue and ON Semiconductor 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 ON Semiconductor 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 ON Semiconductor, you can compare the effects of market volatilities on Global Blue and ON Semiconductor 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 ON Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and ON Semiconductor.
Diversification Opportunities for Global Blue and ON Semiconductor
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and ON Semiconductor is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and ON Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ON Semiconductor 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 ON Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ON Semiconductor has no effect on the direction of Global Blue i.e., Global Blue and ON Semiconductor go up and down completely randomly.
Pair Corralation between Global Blue and ON Semiconductor
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.61 times more return on investment than ON Semiconductor. However, Global Blue is 1.61 times more volatile than ON Semiconductor. It trades about 0.13 of its potential returns per unit of risk. ON Semiconductor is currently generating about -0.04 per unit of risk. If you would invest 549.00 in Global Blue Group on August 26, 2024 and sell it today you would earn a total of 47.00 from holding Global Blue Group or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. ON Semiconductor
Performance |
| Timeline |
| Global Blue Group |
| ON Semiconductor |
Global Blue and ON Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and ON Semiconductor
The main advantage of trading using opposite Global Blue and ON Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, ON Semiconductor 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 ON Semiconductor will offset losses from the drop in ON Semiconductor's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| ON Semiconductor vs. Texas Instruments Incorporated | ON Semiconductor vs. Microchip Technology | ON Semiconductor vs. Analog Devices | ON Semiconductor vs. Qorvo Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |