Correlation Between Global Blue and Radcom

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

Diversification Opportunities for Global Blue and Radcom

-0.24

Correlation Coefficient

Global Blue  Radcom

Very good diversification

The 3 months correlation between Global and Radcom is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of Global Blue i.e., Global Blue and Radcom go up and down completely randomly.

Pair Corralation between Global Blue and Radcom

Allowing for the 90-day total investment horizon Global Blue Group is expected to under-perform the Radcom. But the stock apears to be less risky and, when comparing its historical volatility, Global Blue Group is 6.95 times less risky than Radcom. The stock trades about -0.03 of its potential returns per unit of risk. The Radcom is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,205  in Radcom on May 6, 2025 and sell it today you would earn a total of  104.00  from holding Radcom or generate 8.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Blue Group  vs.  Radcom

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.

Radcom

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Radcom may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Global Blue and Radcom

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

The idea behind Global Blue Group and Radcom 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.