Correlation Between CSG Systems and Global Blue

Can any of the company-specific risk be diversified away by investing in both CSG Systems 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 CSG Systems and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSG Systems International and Global Blue Group, you can compare the effects of market volatilities on CSG Systems 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 CSG Systems with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Global Blue.

Diversification Opportunities for CSG Systems and Global Blue

0.26

Correlation Coefficient

CSG Systems  Global Blue

Modest diversification

The 3 months correlation between CSG and Global is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International 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 CSG Systems 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 CSG Systems International 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 CSG Systems i.e., CSG Systems and Global Blue go up and down completely randomly.

Pair Corralation between CSG Systems and Global Blue

Given the investment horizon of 90 days CSG Systems International is expected to generate 3.83 times more return on investment than Global Blue. However, CSG Systems is 3.83 times more volatile than Global Blue Group. It trades about 0.01 of its potential returns per unit of risk. Global Blue Group is currently generating about -0.02 per unit of risk. If you would invest  6,035  in CSG Systems International on May 4, 2025 and sell it today you would earn a total of  42.00  from holding CSG Systems International or generate 0.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CSG Systems International  vs.  Global Blue Group

CSG Systems International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CSG Systems International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, CSG Systems is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Global Blue Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Blue Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Global Blue is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CSG Systems and Global Blue

The main advantage of trading using opposite CSG Systems and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems 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.

The idea behind CSG Systems International and Global Blue Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.