Correlation Between Global Business and Smartsheet

Can any of the company-specific risk be diversified away by investing in both Global Business and Smartsheet 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 Business and Smartsheet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Business Travel and Smartsheet, you can compare the effects of market volatilities on Global Business and Smartsheet 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 Business with a short position of Smartsheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Business and Smartsheet.

Diversification Opportunities for Global Business and Smartsheet

0.0

Correlation Coefficient

Global Business  Smartsheet

Pay attention - limited upside

The 3 months correlation between Global and Smartsheet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Business Travel and Smartsheet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartsheet and Global Business 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 Business Travel are associated (or correlated) with Smartsheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartsheet has no effect on the direction of Global Business i.e., Global Business and Smartsheet go up and down completely randomly.

Pair Corralation between Global Business and Smartsheet

If you would invest (100.00) in Smartsheet on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Smartsheet or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Global Business Travel  vs.  Smartsheet

Global Business Travel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Business Travel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Smartsheet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Smartsheet has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Smartsheet is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Global Business and Smartsheet

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

The idea behind Global Business Travel and Smartsheet 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.