Correlation Between Global Blue and OneSpan
Can any of the company-specific risk be diversified away by investing in both Global Blue and OneSpan 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 OneSpan 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 OneSpan, you can compare the effects of market volatilities on Global Blue and OneSpan 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 OneSpan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and OneSpan.
Diversification Opportunities for Global Blue and OneSpan
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and OneSpan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and OneSpan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpan 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 OneSpan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpan has no effect on the direction of Global Blue i.e., Global Blue and OneSpan go up and down completely randomly.
Pair Corralation between Global Blue and OneSpan
Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.85 times less return on investment than OneSpan. But when comparing it to its historical volatility, Global Blue Group is 1.1 times less risky than OneSpan. It trades about 0.15 of its potential returns per unit of risk. OneSpan is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,447 in OneSpan on August 24, 2024 and sell it today you would earn a total of 320.00 from holding OneSpan or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. OneSpan
Performance |
| Timeline |
| Global Blue Group |
| OneSpan |
Global Blue and OneSpan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and OneSpan
The main advantage of trading using opposite Global Blue and OneSpan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, OneSpan 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 OneSpan will offset losses from the drop in OneSpan's long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| OneSpan vs. Lesaka Technologies | OneSpan vs. Priority Technology Holdings | OneSpan vs. CSG Systems International | OneSpan 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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