Correlation Between Global Blue and Palantir Technologies
Can any of the company-specific risk be diversified away by investing in both Global Blue and Palantir Technologies 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 Palantir Technologies 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 Palantir Technologies Class, you can compare the effects of market volatilities on Global Blue and Palantir Technologies 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 Palantir Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Palantir Technologies.
Diversification Opportunities for Global Blue and Palantir Technologies
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Palantir is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Palantir Technologies Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palantir 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 Palantir Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palantir Technologies has no effect on the direction of Global Blue i.e., Global Blue and Palantir Technologies go up and down completely randomly.
Pair Corralation between Global Blue and Palantir Technologies
Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.16 times less return on investment than Palantir Technologies. In addition to that, Global Blue is 1.54 times more volatile than Palantir Technologies Class. It trades about 0.18 of its total potential returns per unit of risk. Palantir Technologies Class is currently generating about 0.33 per unit of volatility. If you would invest 6,126 in Palantir Technologies Class on September 18, 2024 and sell it today you would earn a total of 1,313 from holding Palantir Technologies Class or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Palantir Technologies Class
Performance |
| Timeline |
| Global Blue Group |
| Palantir Technologies |
Global Blue and Palantir Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Palantir Technologies
The main advantage of trading using opposite Global Blue and Palantir Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Palantir Technologies 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 Palantir Technologies will offset losses from the drop in Palantir Technologies' long position.| Global Blue vs. Evertec | Global Blue vs. NetScout Systems | Global Blue vs. CSG Systems International | Global Blue vs. Tenable Holdings |
| Palantir Technologies vs. Global Blue Group | Palantir Technologies vs. Aurora Mobile | Palantir Technologies vs. Marqeta | Palantir Technologies vs. Nextnav Acquisition 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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