Correlation Between Global Blue and Telos Corp

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

Diversification Opportunities for Global Blue and Telos Corp

-0.27

Correlation Coefficient

Global Blue  Telos Corp

Very good diversification

The 3 months correlation between Global and Telos is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Global Blue Group and Telos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telos 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 Telos Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telos Corp has no effect on the direction of Global Blue i.e., Global Blue and Telos Corp go up and down completely randomly.

Pair Corralation between Global Blue and Telos Corp

Allowing for the 90-day total investment horizon Global Blue is expected to generate 1.1 times less return on investment than Telos Corp. But when comparing it to its historical volatility, Global Blue Group is 1.19 times less risky than Telos Corp. It trades about 0.04 of its potential returns per unit of risk. Telos Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  335.00  in Telos Corp on September 15, 2024 and sell it today you would earn a total of  12.00  from holding Telos Corp or generate 3.58% 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.  Telos Corp

Global Blue Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Global Blue Group are ranked lower than 2 (%) 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 January 2025.

Telos Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Telos Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Telos Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Global Blue and Telos Corp

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

The idea behind Global Blue Group and Telos 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.