Correlation Between MicroAlgo and Global Blue
Can any of the company-specific risk be diversified away by investing in both MicroAlgo 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 MicroAlgo and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MicroAlgo and Global Blue Group, you can compare the effects of market volatilities on MicroAlgo 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 MicroAlgo with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroAlgo and Global Blue.
Diversification Opportunities for MicroAlgo and Global Blue
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MicroAlgo and Global is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MicroAlgo 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 MicroAlgo 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 MicroAlgo 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 MicroAlgo i.e., MicroAlgo and Global Blue go up and down completely randomly.
Pair Corralation between MicroAlgo and Global Blue
Given the investment horizon of 90 days MicroAlgo is expected to generate 13.3 times more return on investment than Global Blue. However, MicroAlgo is 13.3 times more volatile than Global Blue Group. It trades about 0.04 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.03 per unit of risk. If you would invest 2,280 in MicroAlgo on August 28, 2024 and sell it today you would lose (2,261) from holding MicroAlgo or give up 99.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MicroAlgo vs. Global Blue Group
Performance |
| Timeline |
| MicroAlgo |
| Global Blue Group |
MicroAlgo and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroAlgo and Global Blue
The main advantage of trading using opposite MicroAlgo and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroAlgo 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.| MicroAlgo vs. GigaCloud Technology Class | MicroAlgo vs. Telos Corp | MicroAlgo vs. Cemtrex | MicroAlgo vs. authID Inc |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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