Correlation Between Global Blue and Onto Innovation
Can any of the company-specific risk be diversified away by investing in both Global Blue and Onto Innovation 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 Onto Innovation 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 Onto Innovation, you can compare the effects of market volatilities on Global Blue and Onto Innovation 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 Onto Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Onto Innovation.
Diversification Opportunities for Global Blue and Onto Innovation
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Onto is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Onto Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onto Innovation 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 Onto Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onto Innovation has no effect on the direction of Global Blue i.e., Global Blue and Onto Innovation go up and down completely randomly.
Pair Corralation between Global Blue and Onto Innovation
Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.86 times less return on investment than Onto Innovation. In addition to that, Global Blue is 1.04 times more volatile than Onto Innovation. It trades about 0.03 of its total potential returns per unit of risk. Onto Innovation is currently generating about 0.05 per unit of volatility. If you would invest 10,703 in Onto Innovation on August 27, 2024 and sell it today you would earn a total of 5,926 from holding Onto Innovation or generate 55.37% 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. Onto Innovation
Performance |
| Timeline |
| Global Blue Group |
| Onto Innovation |
Global Blue and Onto Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Onto Innovation
The main advantage of trading using opposite Global Blue and Onto Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Onto Innovation 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 Onto Innovation will offset losses from the drop in Onto Innovation's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Onto Innovation vs. Camtek | Onto Innovation vs. Amtech Systems | Onto Innovation vs. Veeco Instruments | Onto Innovation vs. Ichor Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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