Correlation Between PSI Software and Aegean Airlines
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By analyzing existing cross correlation between PSI Software AG and Aegean Airlines SA, you can compare the effects of market volatilities on PSI Software and Aegean Airlines 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 PSI Software with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Aegean Airlines.
Diversification Opportunities for PSI Software and Aegean Airlines
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PSI and Aegean is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and PSI Software 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 PSI Software AG are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of PSI Software i.e., PSI Software and Aegean Airlines go up and down completely randomly.
Pair Corralation between PSI Software and Aegean Airlines
Assuming the 90 days trading horizon PSI Software is expected to generate 10.31 times less return on investment than Aegean Airlines. But when comparing it to its historical volatility, PSI Software AG is 1.05 times less risky than Aegean Airlines. It trades about 0.0 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 684.00 in Aegean Airlines SA on November 9, 2024 and sell it today you would earn a total of 337.00 from holding Aegean Airlines SA or generate 49.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. Aegean Airlines SA
Performance |
| Timeline |
| PSI Software AG |
| Aegean Airlines SA |
PSI Software and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Aegean Airlines
The main advantage of trading using opposite PSI Software and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| PSI Software vs. Perseus Mining Limited | PSI Software vs. Altair Engineering | PSI Software vs. LAir Liquide SA | PSI Software vs. CHINA SOUTHN AIR H |
| Aegean Airlines vs. Prosiebensat 1 Media | Aegean Airlines vs. Japan Tobacco | Aegean Airlines vs. Tradegate AG Wertpapierhandelsbank | Aegean Airlines vs. IMPERIAL TOBACCO |
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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