Correlation Between Optiva and Global Blue
Can any of the company-specific risk be diversified away by investing in both Optiva 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 Optiva and Global Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optiva Inc and Global Blue Group, you can compare the effects of market volatilities on Optiva 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 Optiva with a short position of Global Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optiva and Global Blue.
Diversification Opportunities for Optiva and Global Blue
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Optiva and Global is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Optiva 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 Optiva 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 Optiva 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 Optiva i.e., Optiva and Global Blue go up and down completely randomly.
Pair Corralation between Optiva and Global Blue
Assuming the 90 days horizon Optiva Inc is expected to generate 9.63 times more return on investment than Global Blue. However, Optiva is 9.63 times more volatile than Global Blue Group. It trades about 0.07 of its potential returns per unit of risk. Global Blue Group is currently generating about -0.2 per unit of risk. If you would invest 442.00 in Optiva Inc on March 7, 2024 and sell it today you would earn a total of 4.00 from holding Optiva Inc or generate 0.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Optiva Inc vs. Global Blue Group
Performance |
Timeline |
Optiva Inc |
Global Blue Group |
Optiva and Global Blue Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Optiva and Global Blue
The main advantage of trading using opposite Optiva and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optiva 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.Optiva vs. Benchmark Electronics | Optiva vs. Bel Fuse A | Optiva vs. Methode Electronics | Optiva vs. Bel Fuse B |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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