Correlation Between OneSpan and Global Blue

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

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

Diversification Opportunities for OneSpan and Global Blue

0.12

Correlation Coefficient

OneSpan  Global Blue

Average diversification

The 3 months correlation between OneSpan and Global is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan 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 OneSpan 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 OneSpan 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 OneSpan i.e., OneSpan and Global Blue go up and down completely randomly.

Pair Corralation between OneSpan and Global Blue

Given the investment horizon of 90 days OneSpan is expected to generate 1.49 times more return on investment than Global Blue. However, OneSpan is 1.49 times more volatile than Global Blue Group. It trades about 0.06 of its potential returns per unit of risk. Global Blue Group is currently generating about 0.02 per unit of risk. If you would invest  1,179  in OneSpan on March 7, 2024 and sell it today you would earn a total of  113.00  from holding OneSpan or generate 9.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

OneSpan  vs.  Global Blue Group

OneSpan

Risk-Adjusted Performance

4 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OneSpan are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, OneSpan displayed solid returns over the last few months and may actually be approaching a breakup point.

Global Blue Group

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Blue Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Global Blue is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with OneSpan and Global Blue

The main advantage of trading using opposite OneSpan and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpan 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.

The idea behind OneSpan and Global Blue Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.