Correlation Between GigaCloud Technology and Global Blue
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology and Global Blue 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 GigaCloud Technology and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaCloud Technology Class and Global Blue Group, you can compare the effects of market volatilities on GigaCloud Technology and Global Blue 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 GigaCloud Technology with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Global Blue.
Diversification Opportunities for GigaCloud Technology and Global Blue
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GigaCloud and Global is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Global Blue Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blue Group and GigaCloud Technology 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 GigaCloud Technology Class are associated (or correlated) with Global Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blue Group has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and Global Blue go up and down completely randomly.
Pair Corralation between GigaCloud Technology and Global Blue
Considering the 90-day investment horizon GigaCloud Technology Class is expected to generate 1.7 times more return on investment than Global Blue. However, GigaCloud Technology is 1.7 times more volatile than Global Blue Group. It trades about 0.09 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.1 per unit of risk. If you would invest 2,277 in GigaCloud Technology Class on September 1, 2024 and sell it today you would earn a total of 193.00 from holding GigaCloud Technology Class or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaCloud Technology Class vs. Global Blue Group
Performance |
| Timeline |
| GigaCloud Technology |
| Global Blue Group |
GigaCloud Technology and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and Global Blue
The main advantage of trading using opposite GigaCloud Technology and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology position performs unexpectedly, Global Blue 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 Global Blue will offset losses from the drop in Global Blue's long position.| GigaCloud Technology vs. Steven Madden | GigaCloud Technology vs. Vera Bradley | GigaCloud Technology vs. Caleres | GigaCloud Technology vs. Wolverine World Wide |
| Global Blue vs. Palo Alto Networks | Global Blue vs. GigaCloud Technology Class | Global Blue vs. Pagaya Technologies | Global Blue vs. Telos Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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