Correlation Between Couchbase and Global Blue

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

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

Diversification Opportunities for Couchbase and Global Blue

-0.35

Correlation Coefficient

Couchbase  Global Blue

Very good diversification

The 3 months correlation between Couchbase and Global is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Couchbase 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 Couchbase 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 Couchbase 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 Couchbase i.e., Couchbase and Global Blue go up and down completely randomly.

Pair Corralation between Couchbase and Global Blue

Given the investment horizon of 90 days Couchbase is expected to generate 1.86 times less return on investment than Global Blue. In addition to that, Couchbase is 1.13 times more volatile than Global Blue Group. It trades about 0.03 of its total potential returns per unit of risk. Global Blue Group is currently generating about 0.06 per unit of volatility. If you would invest  675.00  in Global Blue Group on December 28, 2024 and sell it today you would earn a total of  61.00  from holding Global Blue Group or generate 9.04% return on investment over 90 days.

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

Couchbase  vs.  Global Blue Group

Couchbase

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Couchbase are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Couchbase is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Global Blue Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Blue Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, Global Blue may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Couchbase and Global Blue

The main advantage of trading using opposite Couchbase and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Couchbase 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 Couchbase 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.