Correlation Between Qualys and Global Blue
Can any of the company-specific risk be diversified away by investing in both Qualys 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 Qualys and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qualys Inc and Global Blue Group, you can compare the effects of market volatilities on Qualys 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 Qualys with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qualys and Global Blue.
Diversification Opportunities for Qualys and Global Blue
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qualys and Global is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Qualys Inc 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 Qualys 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 Qualys Inc 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 Qualys i.e., Qualys and Global Blue go up and down completely randomly.
Pair Corralation between Qualys and Global Blue
Given the investment horizon of 90 days Qualys Inc is expected to under-perform the Global Blue. But the stock apears to be less risky and, when comparing its historical volatility, Qualys Inc is 1.8 times less risky than Global Blue. The stock trades about -0.07 of its potential returns per unit of risk. The Global Blue Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Global Blue Group on June 24, 2024 and sell it today you would earn a total of 55.00 from holding Global Blue Group or generate 11.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Qualys Inc vs. Global Blue Group
Performance |
Timeline |
Qualys Inc |
Global Blue Group |
Qualys and Global Blue Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qualys and Global Blue
The main advantage of trading using opposite Qualys and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualys 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.Qualys vs. Uipath Inc | Qualys vs. Block Inc | Qualys vs. Adobe Systems Incorporated | Qualys vs. Crowdstrike Holdings |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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