Correlation Between Global Blue and United Microelectronics
Can any of the company-specific risk be diversified away by investing in both Global Blue and United Microelectronics 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 United Microelectronics 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 United Microelectronics, you can compare the effects of market volatilities on Global Blue and United Microelectronics 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 United Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and United Microelectronics.
Diversification Opportunities for Global Blue and United Microelectronics
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and United is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics 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 United Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Microelectronics has no effect on the direction of Global Blue i.e., Global Blue and United Microelectronics go up and down completely randomly.
Pair Corralation between Global Blue and United Microelectronics
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.44 times more return on investment than United Microelectronics. However, Global Blue is 1.44 times more volatile than United Microelectronics. It trades about 0.06 of its potential returns per unit of risk. United Microelectronics is currently generating about 0.0 per unit of risk. If you would invest 471.00 in Global Blue Group on August 27, 2024 and sell it today you would earn a total of 125.00 from holding Global Blue Group or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Blue Group vs. United Microelectronics
Performance |
| Timeline |
| Global Blue Group |
| United Microelectronics |
Global Blue and United Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and United Microelectronics
The main advantage of trading using opposite Global Blue and United Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, United Microelectronics 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 United Microelectronics will offset losses from the drop in United Microelectronics' long position.| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
| United Microelectronics vs. Silicon Motion Technology | United Microelectronics vs. ASE Industrial Holding | United Microelectronics vs. ChipMOS Technologies | United Microelectronics vs. SemiLEDS |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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