Correlation Between VirnetX Holding and Global Blue
Can any of the company-specific risk be diversified away by investing in both VirnetX Holding 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 VirnetX Holding and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VirnetX Holding Corp and Global Blue Group, you can compare the effects of market volatilities on VirnetX Holding 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 VirnetX Holding with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirnetX Holding and Global Blue.
Diversification Opportunities for VirnetX Holding and Global Blue
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VirnetX and Global is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding VirnetX Holding Corp 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 VirnetX Holding 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 VirnetX Holding Corp 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 VirnetX Holding i.e., VirnetX Holding and Global Blue go up and down completely randomly.
Pair Corralation between VirnetX Holding and Global Blue
Considering the 90-day investment horizon VirnetX Holding Corp is expected to under-perform the Global Blue. But the stock apears to be less risky and, when comparing its historical volatility, VirnetX Holding Corp is 1.2 times less risky than Global Blue. The stock trades about -0.4 of its potential returns per unit of risk. The Global Blue Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Global Blue Group on September 18, 2024 and sell it today you would earn a total of 91.00 from holding Global Blue Group or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VirnetX Holding Corp vs. Global Blue Group
Performance |
| Timeline |
| VirnetX Holding Corp |
| Global Blue Group |
VirnetX Holding and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VirnetX Holding and Global Blue
The main advantage of trading using opposite VirnetX Holding and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VirnetX Holding 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.| VirnetX Holding vs. Hub Cyber Security | VirnetX Holding vs. authID Inc | VirnetX Holding vs. Aurora Mobile | VirnetX Holding vs. Taoping |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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