Correlation Between Global Blue and Acm Research

Can any of the company-specific risk be diversified away by investing in both Global Blue and Acm Research 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 Acm Research 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 Acm Research, you can compare the effects of market volatilities on Global Blue and Acm Research 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 Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Blue and Acm Research.

Diversification Opportunities for Global Blue and Acm Research

-0.76

Correlation Coefficient

Global Blue  Acm Research

Pay attention - limited upside

The 3 months correlation between Global and Acm is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research 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 Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Global Blue i.e., Global Blue and Acm Research go up and down completely randomly.

Pair Corralation between Global Blue and Acm Research

Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 0.74 times more return on investment than Acm Research. However, Global Blue Group is 1.34 times less risky than Acm Research. It trades about 0.5 of its potential returns per unit of risk. Acm Research is currently generating about 0.2 per unit of risk. If you would invest  592.00  in Global Blue Group on October 6, 2024 and sell it today you would earn a total of  126.00  from holding Global Blue Group or generate 21.28% return on investment over 90 days.

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

Global Blue Group  vs.  Acm Research

Global Blue Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Blue Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, Global Blue sustained solid returns over the last few months and may actually be approaching a breakup point.

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Global Blue and Acm Research

The main advantage of trading using opposite Global Blue and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Blue position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.

The idea behind Global Blue Group and Acm Research 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.