Correlation Between Global Blue and SentinelOne

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

Diversification Opportunities for Global Blue and SentinelOne

-0.78

Correlation Coefficient

Global Blue  SentinelOne

Pay attention - limited upside

The 3 months correlation between Global and SentinelOne is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne 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 SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Global Blue i.e., Global Blue and SentinelOne go up and down completely randomly.

Pair Corralation between Global Blue and SentinelOne

Allowing for the 90-day total investment horizon Global Blue Group is expected to generate 2.42 times more return on investment than SentinelOne. However, Global Blue is 2.42 times more volatile than SentinelOne. It trades about 0.35 of its potential returns per unit of risk. SentinelOne is currently generating about -0.02 per unit of risk. If you would invest  621.00  in Global Blue Group on October 21, 2024 and sell it today you would earn a total of  118.00  from holding Global Blue Group or generate 19.0% 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.  SentinelOne

Global Blue Group

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Blue Group are ranked lower than 15 (%) 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.

SentinelOne

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Global Blue and SentinelOne

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

The idea behind Global Blue Group and SentinelOne 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.