Correlation Between Global Blue and CSG Systems

Can any of the company-specific risk be diversified away by investing in both Global Blue and CSG Systems 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 CSG Systems 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 CSG Systems International, you can compare the effects of market volatilities on Global Blue and CSG Systems 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 CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and CSG Systems.

Diversification Opportunities for Global Blue and CSG Systems

0.29

Correlation Coefficient

Global Blue  CSG Systems

Modest diversification

The 3 months correlation between Global and CSG is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International 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 CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of Global Blue i.e., Global Blue and CSG Systems go up and down completely randomly.

Pair Corralation between Global Blue and CSG Systems

Allowing for the 90-day total investment horizon Global Blue Group is expected to under-perform the CSG Systems. But the stock apears to be less risky and, when comparing its historical volatility, Global Blue Group is 3.83 times less risky than CSG Systems. The stock trades about -0.02 of its potential returns per unit of risk. The CSG Systems International is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  6,035  in CSG Systems International on May 5, 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

Global Blue Group  vs.  CSG Systems International

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.

CSG Systems International

Risk-Adjusted Performance

Weak

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.

Pair Trading with Global Blue and CSG Systems

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

The idea behind Global Blue Group and CSG Systems International 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.