Correlation Between Global Blue and AvidXchange Holdings

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

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

Diversification Opportunities for Global Blue and AvidXchange Holdings

-0.15

Correlation Coefficient

Global Blue  AvidXchange Holdings

Good diversification

The 3 months correlation between Global and AvidXchange is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and AvidXchange Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AvidXchange Holdings and Global Blue 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 Global Blue Group are associated (or correlated) with AvidXchange Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AvidXchange Holdings has no effect on the direction of Global Blue i.e., Global Blue and AvidXchange Holdings go up and down completely randomly.

Pair Corralation between Global Blue and AvidXchange Holdings

Allowing for the 90-day total investment horizon Global Blue Group is expected to under-perform the AvidXchange Holdings. In addition to that, Global Blue is 3.36 times more volatile than AvidXchange Holdings. It trades about -0.02 of its total potential returns per unit of risk. AvidXchange Holdings is currently generating about 0.17 per unit of volatility. If you would invest  974.00  in AvidXchange Holdings on May 7, 2025 and sell it today you would earn a total of  13.00  from holding AvidXchange Holdings or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Global Blue Group  vs.  AvidXchange Holdings

Global Blue Group

Risk-Adjusted Performance

Weakest

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.

AvidXchange Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AvidXchange Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, AvidXchange Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Global Blue and AvidXchange Holdings

The main advantage of trading using opposite Global Blue and AvidXchange Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, AvidXchange Holdings 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 AvidXchange Holdings will offset losses from the drop in AvidXchange Holdings' long position.

The idea behind Global Blue Group and AvidXchange Holdings 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.