Correlation Between I3 Verticals and Global Blue
Can any of the company-specific risk be diversified away by investing in both I3 Verticals 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 I3 Verticals and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i3 Verticals and Global Blue Group, you can compare the effects of market volatilities on I3 Verticals 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 I3 Verticals with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of I3 Verticals and Global Blue.
Diversification Opportunities for I3 Verticals and Global Blue
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IIIV and Global is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding i3 Verticals 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 I3 Verticals 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 i3 Verticals 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 I3 Verticals i.e., I3 Verticals and Global Blue go up and down completely randomly.
Pair Corralation between I3 Verticals and Global Blue
Given the investment horizon of 90 days I3 Verticals is expected to generate 2.47 times less return on investment than Global Blue. But when comparing it to its historical volatility, i3 Verticals is 1.48 times less risky than Global Blue. It trades about 0.02 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Global Blue Group on August 27, 2024 and sell it today you would earn a total of 73.00 from holding Global Blue Group or generate 13.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
i3 Verticals vs. Global Blue Group
Performance |
| Timeline |
| i3 Verticals |
| Global Blue Group |
I3 Verticals and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I3 Verticals and Global Blue
The main advantage of trading using opposite I3 Verticals and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I3 Verticals 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.| I3 Verticals vs. Evertec | I3 Verticals vs. Couchbase | I3 Verticals vs. Flywire Corp | I3 Verticals vs. Euronet Worldwide |
| Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |