Correlation Between Hub Cyber and Global Blue
Can any of the company-specific risk be diversified away by investing in both Hub Cyber 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 Hub Cyber and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hub Cyber Security and Global Blue Group, you can compare the effects of market volatilities on Hub Cyber 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 Hub Cyber with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hub Cyber and Global Blue.
Diversification Opportunities for Hub Cyber and Global Blue
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hub and Global is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hub Cyber Security 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 Hub Cyber 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 Hub Cyber Security 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 Hub Cyber i.e., Hub Cyber and Global Blue go up and down completely randomly.
Pair Corralation between Hub Cyber and Global Blue
Given the investment horizon of 90 days Hub Cyber Security is expected to under-perform the Global Blue. In addition to that, Hub Cyber is 1.04 times more volatile than Global Blue Group. It trades about -0.29 of its total potential returns per unit of risk. Global Blue Group is currently generating about 0.18 per unit of volatility. If you would invest 546.00 in Global Blue Group on September 18, 2024 and sell it today you would earn a total of 91.00 from holding Global Blue Group or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hub Cyber Security vs. Global Blue Group
Performance |
| Timeline |
| Hub Cyber Security |
| Global Blue Group |
Hub Cyber and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hub Cyber and Global Blue
The main advantage of trading using opposite Hub Cyber and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hub Cyber 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.| Hub Cyber vs. authID Inc | Hub Cyber vs. VirnetX Holding Corp | Hub Cyber vs. Aurora Mobile | Hub Cyber vs. GigaCloud Technology Class |
| Global Blue vs. Evertec | Global Blue vs. NetScout Systems | Global Blue vs. CSG Systems International | Global Blue vs. Tenable Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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