Correlation Between Pagaya Technologies and Global Blue
Can any of the company-specific risk be diversified away by investing in both Pagaya Technologies 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 Pagaya Technologies and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pagaya Technologies and Global Blue Group, you can compare the effects of market volatilities on Pagaya Technologies 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 Pagaya Technologies with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pagaya Technologies and Global Blue.
Diversification Opportunities for Pagaya Technologies and Global Blue
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pagaya and Global is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies i.e., Pagaya Technologies and Global Blue go up and down completely randomly.
Pair Corralation between Pagaya Technologies and Global Blue
Considering the 90-day investment horizon Pagaya Technologies is expected to generate 1.18 times less return on investment than Global Blue. In addition to that, Pagaya Technologies is 1.92 times more volatile than Global Blue Group. It trades about 0.03 of its total potential returns per unit of risk. Global Blue Group is currently generating about 0.07 per unit of volatility. If you would invest 486.00 in Global Blue Group on September 1, 2024 and sell it today you would earn a total of 129.00 from holding Global Blue Group or generate 26.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pagaya Technologies vs. Global Blue Group
Performance |
| Timeline |
| Pagaya Technologies |
| Global Blue Group |
Pagaya Technologies and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pagaya Technologies and Global Blue
The main advantage of trading using opposite Pagaya Technologies and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya Technologies 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.| Pagaya Technologies vs. Alarum Technologies | Pagaya Technologies vs. Arqit Quantum | Pagaya Technologies vs. Nutanix | Pagaya Technologies vs. Palo Alto Networks |
| Global Blue vs. Palo Alto Networks | Global Blue vs. GigaCloud Technology Class | Global Blue vs. Pagaya Technologies | Global Blue vs. Telos Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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