Correlation Between Global Blue and Kyndryl Holdings
Can any of the company-specific risk be diversified away by investing in both Global Blue and Kyndryl 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 Kyndryl 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 Kyndryl Holdings, you can compare the effects of market volatilities on Global Blue and Kyndryl 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 Kyndryl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Kyndryl Holdings.
Diversification Opportunities for Global Blue and Kyndryl Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Kyndryl is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Kyndryl Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyndryl 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 Kyndryl Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyndryl Holdings has no effect on the direction of Global Blue i.e., Global Blue and Kyndryl Holdings go up and down completely randomly.
Pair Corralation between Global Blue and Kyndryl Holdings
Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.61 times more return on investment than Kyndryl Holdings. However, Global Blue is 1.61 times more volatile than Kyndryl Holdings. It trades about 0.1 of its potential returns per unit of risk. Kyndryl Holdings is currently generating about -0.17 per unit of risk. If you would invest 483.00 in Global Blue Group on January 25, 2024 and sell it today you would earn a total of 27.00 from holding Global Blue Group or generate 5.59% 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. Kyndryl Holdings
Performance |
Timeline |
Global Blue Group |
Kyndryl Holdings |
Global Blue and Kyndryl Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Blue and Kyndryl Holdings
The main advantage of trading using opposite Global Blue and Kyndryl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Kyndryl 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 Kyndryl Holdings will offset losses from the drop in Kyndryl Holdings' long position.Global Blue vs. Evertec | Global Blue vs. Consensus Cloud Solutions | Global Blue vs. CSG Systems International | Global Blue vs. EverCommerce |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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