Correlation Between PT Bank and PSI Software
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By analyzing existing cross correlation between PT Bank Maybank and PSI Software AG, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and PSI Software.
Diversification Opportunities for PT Bank and PSI Software
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BOZA and PSI is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Maybank 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 PT Bank 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 PT Bank Maybank 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 PT Bank i.e., PT Bank and PSI Software go up and down completely randomly.
Pair Corralation between PT Bank and PSI Software
Assuming the 90 days trading horizon PT Bank is expected to generate 1.66 times less return on investment than PSI Software. In addition to that, PT Bank is 3.74 times more volatile than PSI Software AG. It trades about 0.02 of its total potential returns per unit of risk. PSI Software AG is currently generating about 0.11 per unit of volatility. If you would invest 2,130 in PSI Software AG on September 1, 2024 and sell it today you would earn a total of 50.00 from holding PSI Software AG or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Maybank vs. PSI Software AG
Performance |
| Timeline |
| PT Bank Maybank |
| PSI Software AG |
PT Bank and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and PSI Software
The main advantage of trading using opposite PT Bank and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.| PT Bank vs. NIPPON STEEL SPADR | PT Bank vs. Perma Fix Environmental Services | PT Bank vs. MITSUBISHI STEEL MFG | PT Bank vs. SIDETRADE EO 1 |
| PSI Software vs. SAP SE | PSI Software vs. Superior Plus Corp | PSI Software vs. NMI Holdings | PSI Software vs. Origin Agritech |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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