Correlation Between Global Blue and VMware
Can any of the company-specific risk be diversified away by investing in both Global Blue and VMware 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 VMware 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 VMware Inc, you can compare the effects of market volatilities on Global Blue and VMware 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 VMware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and VMware.
Diversification Opportunities for Global Blue and VMware
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and VMware is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and VMware Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VMware Inc 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 VMware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VMware Inc has no effect on the direction of Global Blue i.e., Global Blue and VMware go up and down completely randomly.
Pair Corralation between Global Blue and VMware
If you would invest 559.00 in Global Blue Group on August 31, 2024 and sell it today you would earn a total of 56.00 from holding Global Blue Group or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Global Blue Group vs. VMware Inc
Performance |
| Timeline |
| Global Blue Group |
| VMware Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Blue and VMware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Blue and VMware
The main advantage of trading using opposite Global Blue and VMware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, VMware 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 VMware will offset losses from the drop in VMware's long position.| Global Blue vs. Aquagold International | Global Blue vs. Thrivent High Yield | Global Blue vs. Morningstar Unconstrained Allocation | Global Blue vs. Via Renewables |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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