Correlation Between Zapata Computing and Global Blue
Can any of the company-specific risk be diversified away by investing in both Zapata Computing 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 Zapata Computing and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zapata Computing Holdings and Global Blue Group, you can compare the effects of market volatilities on Zapata Computing 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 Zapata Computing with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zapata Computing and Global Blue.
Diversification Opportunities for Zapata Computing and Global Blue
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zapata and Global is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Zapata Computing Holdings 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 Zapata Computing 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 Zapata Computing Holdings 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 Zapata Computing i.e., Zapata Computing and Global Blue go up and down completely randomly.
Pair Corralation between Zapata Computing and Global Blue
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 | 4.76% |
| Values | Daily Returns |
Zapata Computing Holdings vs. Global Blue Group
Performance |
| Timeline |
| Zapata Computing Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Global Blue Group |
Zapata Computing and Global Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zapata Computing and Global Blue
The main advantage of trading using opposite Zapata Computing and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zapata Computing 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.| Zapata Computing vs. Playtech plc | Zapata Computing vs. Funko Inc | Zapata Computing vs. Summit Materials | Zapata Computing vs. Marine Products |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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