Correlation Between Global Blue and Sangoma Technologies
Can any of the company-specific risk be diversified away by investing in both Global Blue and Sangoma 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 Sangoma 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 Sangoma Technologies Corp, you can compare the effects of market volatilities on Global Blue and Sangoma 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 Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Sangoma Technologies.
Diversification Opportunities for Global Blue and Sangoma Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Sangoma is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies 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 Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of Global Blue i.e., Global Blue and Sangoma Technologies go up and down completely randomly.
Pair Corralation between Global Blue and Sangoma Technologies
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.68 times more return on investment than Sangoma Technologies. However, Global Blue is 1.68 times more volatile than Sangoma Technologies Corp. It trades about 0.22 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about 0.24 per unit of risk. If you would invest 541.00 in Global Blue Group on August 24, 2024 and sell it today you would earn a total of 84.00 from holding Global Blue Group or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. Sangoma Technologies Corp
Performance |
| Timeline |
| Global Blue Group |
| Sangoma Technologies Corp |
Global Blue and Sangoma Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and Sangoma Technologies
The main advantage of trading using opposite Global Blue and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Sangoma 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| Sangoma Technologies vs. Lesaka Technologies | Sangoma Technologies vs. Priority Technology Holdings | Sangoma Technologies vs. CSG Systems International | Sangoma Technologies vs. OneSpan |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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