Correlation Between Global Blue and Intrusion

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

Diversification Opportunities for Global Blue and Intrusion

0.14

Correlation Coefficient

Global Blue  Intrusion

Average diversification

The 3 months correlation between Global and Intrusion is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion 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 Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of Global Blue i.e., Global Blue and Intrusion go up and down completely randomly.

Pair Corralation between Global Blue and Intrusion

Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 0.21 times more return on investment than Intrusion. However, Global Blue Group is 4.72 times less risky than Intrusion. It trades about 0.06 of its potential returns per unit of risk. Intrusion is currently generating about -0.11 per unit of risk. If you would invest  675.00  in Global Blue Group on December 30, 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Blue Group  vs.  Intrusion

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.

Intrusion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intrusion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Global Blue and Intrusion

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

The idea behind Global Blue Group and Intrusion 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.