Correlation Between Taoping and Global Blue
Can any of the company-specific risk be diversified away by investing in both Taoping 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 Taoping and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taoping and Global Blue Group, you can compare the effects of market volatilities on Taoping 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 Taoping with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taoping and Global Blue.
Diversification Opportunities for Taoping and Global Blue
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taoping and Global is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Taoping 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 Taoping 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 Taoping 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 Taoping i.e., Taoping and Global Blue go up and down completely randomly.
Pair Corralation between Taoping and Global Blue
Given the investment horizon of 90 days Taoping is expected to under-perform the Global Blue. But the stock apears to be less risky and, when comparing its historical volatility, Taoping is 1.18 times less risky than Global Blue. The stock trades about -0.3 of its potential returns per unit of risk. The Global Blue Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 564.00 in Global Blue Group on September 2, 2024 and sell it today you would earn a total of 51.00 from holding Global Blue Group or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taoping vs. Global Blue Group
Performance |
| Timeline |
| Taoping |
| Global Blue Group |
Taoping and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taoping and Global Blue
The main advantage of trading using opposite Taoping and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taoping 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.| Taoping vs. TonnerOne World Holdings | Taoping vs. Global Blue Group | Taoping vs. Bridgeline Digital | Taoping vs. Cerberus Cyber Sentinel |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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