Correlation Between Via Renewables and Global Blue
Can any of the company-specific risk be diversified away by investing in both Via Renewables 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 Via Renewables and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Renewables and Global Blue Group, you can compare the effects of market volatilities on Via Renewables 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 Via Renewables with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Renewables and Global Blue.
Diversification Opportunities for Via Renewables and Global Blue
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Via and Global is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables 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 Via Renewables 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 Via Renewables 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 Via Renewables i.e., Via Renewables and Global Blue go up and down completely randomly.
Pair Corralation between Via Renewables and Global Blue
Assuming the 90 days horizon Via Renewables is expected to generate 3.23 times less return on investment than Global Blue. But when comparing it to its historical volatility, Via Renewables is 4.2 times less risky than Global Blue. It trades about 0.16 of its potential returns per unit of risk. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Via Renewables vs. Global Blue Group
Performance |
| Timeline |
| Via Renewables |
| Global Blue Group |
Via Renewables and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Renewables and Global Blue
The main advantage of trading using opposite Via Renewables and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Renewables 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.| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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