Correlation Between HomeToGo and PSI Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between HomeToGo SE and PSI Software AG, you can compare the effects of market volatilities on HomeToGo 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 HomeToGo with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of HomeToGo and PSI Software.
Diversification Opportunities for HomeToGo and PSI Software
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HomeToGo and PSI is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HomeToGo SE 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 HomeToGo 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 HomeToGo SE 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 HomeToGo i.e., HomeToGo and PSI Software go up and down completely randomly.
Pair Corralation between HomeToGo and PSI Software
Assuming the 90 days trading horizon HomeToGo SE is expected to under-perform the PSI Software. In addition to that, HomeToGo is 2.13 times more volatile than PSI Software AG. It trades about -0.13 of its total potential returns per unit of risk. PSI Software AG is currently generating about -0.04 per unit of volatility. If you would invest 2,210 in PSI Software AG on August 29, 2024 and sell it today you would lose (30.00) from holding PSI Software AG or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HomeToGo SE vs. PSI Software AG
Performance |
| Timeline |
| HomeToGo SE |
| PSI Software AG |
HomeToGo and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HomeToGo and PSI Software
The main advantage of trading using opposite HomeToGo and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeToGo 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.| HomeToGo vs. Alphabet Class A | HomeToGo vs. Alphabet Class A | HomeToGo vs. Alphabet | HomeToGo vs. Meta Platforms |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |