Correlation Between Global Blue and AuthID

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

Diversification Opportunities for Global Blue and AuthID

-0.48

Correlation Coefficient

Global Blue  AuthID

Very good diversification

The 3 months correlation between Global and AuthID is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and authID Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on authID Inc 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 AuthID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of authID Inc has no effect on the direction of Global Blue i.e., Global Blue and AuthID go up and down completely randomly.

Pair Corralation between Global Blue and AuthID

Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 0.49 times more return on investment than AuthID. However, Global Blue Group is 2.05 times less risky than AuthID. It trades about 0.06 of its potential returns per unit of risk. authID Inc is currently generating about 0.02 per unit of risk. 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	Very Weak
Accuracy	98.36%
Values	Daily Returns

Global Blue Group  vs.  authID Inc

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.

authID Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in authID Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, AuthID may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Global Blue and AuthID

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

The idea behind Global Blue Group and authID Inc 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.