Correlation Between Global Blue and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Global Blue and SentinelOne 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 SentinelOne 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 SentinelOne, you can compare the effects of market volatilities on Global Blue and SentinelOne 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 SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and SentinelOne.
Diversification Opportunities for Global Blue and SentinelOne
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and SentinelOne is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne 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 SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Global Blue i.e., Global Blue and SentinelOne go up and down completely randomly.
Pair Corralation between Global Blue and SentinelOne
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.87 times more return on investment than SentinelOne. However, Global Blue is 1.87 times more volatile than SentinelOne. It trades about 0.18 of its potential returns per unit of risk. SentinelOne is currently generating about -0.37 per unit of risk. If you would invest 637.00 in Global Blue Group on December 8, 2024 and sell it today you would earn a total of 101.00 from holding Global Blue Group or generate 15.86% 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. SentinelOne
Performance |
| Timeline |
| Global Blue Group |
| SentinelOne |
Global Blue and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and SentinelOne
The main advantage of trading using opposite Global Blue and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.| Global Blue vs. Evertec | ||
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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