Correlation Between Uipath and Global Blue
Can any of the company-specific risk be diversified away by investing in both Uipath 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 Uipath and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uipath Inc and Global Blue Group, you can compare the effects of market volatilities on Uipath 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 Uipath with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uipath and Global Blue.
Diversification Opportunities for Uipath and Global Blue
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Uipath and Global is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Uipath Inc 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 Uipath 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 Uipath Inc 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 Uipath i.e., Uipath and Global Blue go up and down completely randomly.
Pair Corralation between Uipath and Global Blue
Given the investment horizon of 90 days Uipath is expected to generate 7.9 times less return on investment than Global Blue. In addition to that, Uipath is 1.14 times more volatile than Global Blue Group. It trades about 0.0 of its total potential returns per unit of risk. Global Blue Group is currently generating about 0.04 per unit of volatility. If you would invest 500.00 in Global Blue Group on September 19, 2024 and sell it today you would earn a total of 137.00 from holding Global Blue Group or generate 27.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uipath Inc vs. Global Blue Group
Performance |
| Timeline |
| Uipath Inc |
| Global Blue Group |
Uipath and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uipath and Global Blue
The main advantage of trading using opposite Uipath and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uipath 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.The idea behind Uipath Inc and Global Blue Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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