Correlation Between GWILLI FOOD and PSI Software
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By analyzing existing cross correlation between GWILLI FOOD and PSI Software AG, you can compare the effects of market volatilities on GWILLI FOOD 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 GWILLI FOOD with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and PSI Software.
Diversification Opportunities for GWILLI FOOD and PSI Software
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GWILLI and PSI is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD i.e., GWILLI FOOD and PSI Software go up and down completely randomly.
Pair Corralation between GWILLI FOOD and PSI Software
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 3.83 times more return on investment than PSI Software. However, GWILLI FOOD is 3.83 times more volatile than PSI Software AG. It trades about 0.27 of its potential returns per unit of risk. PSI Software AG is currently generating about 0.12 per unit of risk. If you would invest 1,080 in GWILLI FOOD on October 19, 2024 and sell it today you would earn a total of 450.00 from holding GWILLI FOOD or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. PSI Software AG
Performance |
| Timeline |
| GWILLI FOOD |
| PSI Software AG |
GWILLI FOOD and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and PSI Software
The main advantage of trading using opposite GWILLI FOOD and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD 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.| GWILLI FOOD vs. Apple Inc | GWILLI FOOD vs. Apple Inc | GWILLI FOOD vs. Apple Inc | GWILLI FOOD vs. Apple Inc |
| PSI Software vs. BROADWIND ENRGY | PSI Software vs. NIGHTINGALE HEALTH EO | PSI Software vs. CLOVER HEALTH INV | PSI Software vs. GOLD ROAD RES |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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