Correlation Between LPKF Laser and PSI Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between LPKF Laser Electronics and PSI Software AG, you can compare the effects of market volatilities on LPKF Laser 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 LPKF Laser with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and PSI Software.
Diversification Opportunities for LPKF Laser and PSI Software
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LPKF and PSI is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics 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 LPKF Laser 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 LPKF Laser Electronics 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 LPKF Laser i.e., LPKF Laser and PSI Software go up and down completely randomly.
Pair Corralation between LPKF Laser and PSI Software
Assuming the 90 days horizon LPKF Laser Electronics is expected to generate 0.84 times more return on investment than PSI Software. However, LPKF Laser Electronics is 1.19 times less risky than PSI Software. It trades about -0.06 of its potential returns per unit of risk. PSI Software AG is currently generating about -0.07 per unit of risk. If you would invest 865.00 in LPKF Laser Electronics on August 28, 2024 and sell it today you would lose (14.00) from holding LPKF Laser Electronics or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. PSI Software AG
Performance |
| Timeline |
| LPKF Laser Electronics |
| PSI Software AG |
LPKF Laser and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and PSI Software
The main advantage of trading using opposite LPKF Laser and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser 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.| LPKF Laser vs. SOUTHWEST AIRLINES | LPKF Laser vs. Granite Construction | LPKF Laser vs. EAGLE MATERIALS | LPKF Laser vs. WIMFARM SA EO |
| PSI Software vs. Nemetschek AG ON | 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |