Correlation Between SYSTEMAIR and PSI Software
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By analyzing existing cross correlation between SYSTEMAIR AB and PSI Software AG, you can compare the effects of market volatilities on SYSTEMAIR and PSI Software 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 SYSTEMAIR with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYSTEMAIR and PSI Software.
Diversification Opportunities for SYSTEMAIR and PSI Software
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SYSTEMAIR and PSI is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding SYSTEMAIR AB and PSI Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSI Software AG and SYSTEMAIR 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 SYSTEMAIR AB are associated (or correlated) with PSI Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSI Software AG has no effect on the direction of SYSTEMAIR i.e., SYSTEMAIR and PSI Software go up and down completely randomly.
Pair Corralation between SYSTEMAIR and PSI Software
Assuming the 90 days trading horizon SYSTEMAIR AB is expected to generate 1.49 times more return on investment than PSI Software. However, SYSTEMAIR is 1.49 times more volatile than PSI Software AG. It trades about 0.05 of its potential returns per unit of risk. PSI Software AG is currently generating about -0.05 per unit of risk. If you would invest 494.00 in SYSTEMAIR AB on August 31, 2024 and sell it today you would earn a total of 288.00 from holding SYSTEMAIR AB or generate 58.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
SYSTEMAIR AB vs. PSI Software AG
Performance |
| Timeline |
| SYSTEMAIR AB |
| PSI Software AG |
SYSTEMAIR and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SYSTEMAIR and PSI Software
The main advantage of trading using opposite SYSTEMAIR and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYSTEMAIR position performs unexpectedly, PSI Software 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 PSI Software will offset losses from the drop in PSI Software's long position.| SYSTEMAIR vs. HANOVER INSURANCE | SYSTEMAIR vs. Benchmark Electronics | SYSTEMAIR vs. UMC Electronics Co | SYSTEMAIR vs. Direct Line Insurance |
| PSI Software vs. Nok Airlines PCL | PSI Software vs. OAKTRSPECLENDNEW | PSI Software vs. QBE Insurance Group | PSI Software vs. SINGAPORE AIRLINES |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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