Correlation Between Global Blue and Cerberus Cyber

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

Diversification Opportunities for Global Blue and Cerberus Cyber

-0.16

Correlation Coefficient

Global Blue  Cerberus Cyber

Good diversification

The 3 months correlation between Global and Cerberus is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Cerberus Cyber Sentinel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerberus Cyber Sentinel 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 Cerberus Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerberus Cyber Sentinel has no effect on the direction of Global Blue i.e., Global Blue and Cerberus Cyber go up and down completely randomly.

Pair Corralation between Global Blue and Cerberus Cyber

Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 0.32 times more return on investment than Cerberus Cyber. However, Global Blue Group is 3.16 times less risky than Cerberus Cyber. It trades about 0.06 of its potential returns per unit of risk. Cerberus Cyber Sentinel is currently generating about -0.28 per unit of risk. 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

Global Blue Group  vs.  Cerberus Cyber Sentinel

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.

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.

Pair Trading with Global Blue and Cerberus Cyber

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

The idea behind Global Blue Group and Cerberus Cyber Sentinel 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.

Check out your portfolio center.

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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.