Correlation Between Palantir Technologies and Global Blue
Can any of the company-specific risk be diversified away by investing in both Palantir 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 Palantir 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 Palantir Technologies Class and Global Blue Group, you can compare the effects of market volatilities on Palantir 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 Palantir Technologies with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Global Blue.
Diversification Opportunities for Palantir Technologies and Global Blue
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Palantir and Global is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class 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 Palantir 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 Palantir Technologies Class 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 Palantir Technologies i.e., Palantir Technologies and Global Blue go up and down completely randomly.
Pair Corralation between Palantir Technologies and Global Blue
Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 0.65 times more return on investment than Global Blue. However, Palantir Technologies Class is 1.54 times less risky than Global Blue. It trades about 0.33 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.18 per unit of risk. If you would invest 6,126 in Palantir Technologies Class on September 18, 2024 and sell it today you would earn a total of 1,313 from holding Palantir Technologies Class or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palantir Technologies Class vs. Global Blue Group
Performance |
| Timeline |
| Palantir Technologies |
| Global Blue Group |
Palantir Technologies and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and Global Blue
The main advantage of trading using opposite Palantir Technologies and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir 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.| Palantir Technologies vs. Global Blue Group | Palantir Technologies vs. Aurora Mobile | Palantir Technologies vs. Marqeta | Palantir Technologies vs. Nextnav Acquisition Corp |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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