Correlation Between Global Blue and Appian Corp

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

Diversification Opportunities for Global Blue and Appian Corp

0.49

Correlation Coefficient

Global Blue  Appian Corp

Very weak diversification

The 3 months correlation between Global and Appian is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Appian Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appian Corp 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 Appian Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appian Corp has no effect on the direction of Global Blue i.e., Global Blue and Appian Corp go up and down completely randomly.

Pair Corralation between Global Blue and Appian Corp

Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 1.29 times more return on investment than Appian Corp. However, Global Blue is 1.29 times more volatile than Appian Corp. It trades about 0.01 of its potential returns per unit of risk. Appian Corp is currently generating about -0.13 per unit of risk. If you would invest  625.00  in Global Blue Group on September 22, 2024 and sell it today you would lose (5.00) from holding Global Blue Group or give up 0.8% of portfolio value over 90 days.

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

Global Blue Group  vs.  Appian Corp

Global Blue Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Blue Group are ranked lower than 6 (%) 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.

Appian Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Appian Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Appian Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Global Blue and Appian Corp

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

The idea behind Global Blue Group and Appian Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.