Correlation Between Joint Stock and Global Blue
Can any of the company-specific risk be diversified away by investing in both Joint Stock 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 Joint Stock and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joint Stock and Global Blue Group, you can compare the effects of market volatilities on Joint Stock 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 Joint Stock with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and Global Blue.
Diversification Opportunities for Joint Stock and Global Blue
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Joint and Global is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock 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 Joint Stock 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 Joint Stock 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 Joint Stock i.e., Joint Stock and Global Blue go up and down completely randomly.
Pair Corralation between Joint Stock and Global Blue
Given the investment horizon of 90 days Joint Stock is expected to under-perform the Global Blue. But the stock apears to be less risky and, when comparing its historical volatility, Joint Stock is 1.78 times less risky than Global Blue. The stock trades about -0.07 of its potential returns per unit of risk. The Global Blue Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 563.00 in Global Blue Group on August 28, 2024 and sell it today you would lose (1.00) from holding Global Blue Group or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Joint Stock vs. Global Blue Group
Performance |
| Timeline |
| Joint Stock |
| Global Blue Group |
Joint Stock and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Stock and Global Blue
The main advantage of trading using opposite Joint Stock and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock 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.| Joint Stock vs. Treasury Wine Estates | Joint Stock vs. Oatly Group AB | Joint Stock vs. Vistra Energy Corp | Joint Stock vs. NRG Energy |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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