Correlation Between Global Blue and Repay Holdings
Can any of the company-specific risk be diversified away by investing in both Global Blue and Repay Holdings 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 Repay Holdings 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 Repay Holdings Corp, you can compare the effects of market volatilities on Global Blue and Repay Holdings 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 Repay Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Repay Holdings.
Diversification Opportunities for Global Blue and Repay Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Repay is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp 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 Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Global Blue i.e., Global Blue and Repay Holdings go up and down completely randomly.
Pair Corralation between Global Blue and Repay Holdings
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 2.0 times more return on investment than Repay Holdings. However, Global Blue is 2.0 times more volatile than Repay Holdings Corp. It trades about 0.07 of its potential returns per unit of risk. Repay Holdings Corp is currently generating about 0.01 per unit of risk. If you would invest 693.00 in Global Blue Group on November 1, 2024 and sell it today you would earn a total of 21.00 from holding Global Blue Group or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Repay Holdings Corp
Performance |
| Timeline |
| Global Blue Group |
| Repay Holdings Corp |
Global Blue and Repay Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Repay Holdings
The main advantage of trading using opposite Global Blue and Repay Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Repay Holdings 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 Repay Holdings will offset losses from the drop in Repay Holdings' long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Repay Holdings vs. Global Blue Group | Repay Holdings vs. Optiva Inc | Repay Holdings vs. Sangoma Technologies Corp | Repay Holdings vs. Evertec |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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