Correlation Between Cerberus Cyber and Global Blue

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

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

Diversification Opportunities for Cerberus Cyber and Global Blue

-0.16

Correlation Coefficient

Cerberus Cyber  Global Blue

Good diversification

The 3 months correlation between Cerberus and Global is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cerberus Cyber Sentinel 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 Cerberus Cyber 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 Cerberus Cyber Sentinel 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 Cerberus Cyber i.e., Cerberus Cyber and Global Blue go up and down completely randomly.

Pair Corralation between Cerberus Cyber and Global Blue

Given the investment horizon of 90 days Cerberus Cyber Sentinel is expected to under-perform the Global Blue. In addition to that, Cerberus Cyber is 3.16 times more volatile than Global Blue Group. It trades about -0.28 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 29, 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

Cerberus Cyber Sentinel  vs.  Global Blue Group

Cerberus Cyber Sentinel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cerberus Cyber Sentinel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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 Cerberus Cyber and Global Blue

The main advantage of trading using opposite Cerberus Cyber and Global Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerberus Cyber 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 Cerberus Cyber Sentinel 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.