Correlation Between PSI Software and Alfa Financial
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By analyzing existing cross correlation between PSI Software AG and Alfa Financial Software, you can compare the effects of market volatilities on PSI Software and Alfa Financial 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 Alfa Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Alfa Financial.
Diversification Opportunities for PSI Software and Alfa Financial
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PSI and Alfa is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Alfa Financial Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfa Financial Software 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 Alfa Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfa Financial Software has no effect on the direction of PSI Software i.e., PSI Software and Alfa Financial go up and down completely randomly.
Pair Corralation between PSI Software and Alfa Financial
Assuming the 90 days trading horizon PSI Software AG is expected to generate 0.46 times more return on investment than Alfa Financial. However, PSI Software AG is 2.16 times less risky than Alfa Financial. It trades about 0.12 of its potential returns per unit of risk. Alfa Financial Software is currently generating about -0.17 per unit of risk. If you would invest 2,100 in PSI Software AG on October 19, 2024 and sell it today you would earn a total of 90.00 from holding PSI Software AG or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. Alfa Financial Software
Performance |
| Timeline |
| PSI Software AG |
| Alfa Financial Software |
PSI Software and Alfa Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Alfa Financial
The main advantage of trading using opposite PSI Software and Alfa Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Alfa Financial 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 Alfa Financial will offset losses from the drop in Alfa Financial's long position.| PSI Software vs. BROADWIND ENRGY | PSI Software vs. NIGHTINGALE HEALTH EO | PSI Software vs. CLOVER HEALTH INV | PSI Software vs. GOLD ROAD RES |
| Alfa Financial vs. YOOMA WELLNESS INC | Alfa Financial vs. PT Wintermar Offshore | Alfa Financial vs. COPLAND ROAD CAPITAL | Alfa Financial vs. BW OFFSHORE LTD |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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