Correlation Between PSI Software and Amkor Technology
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By analyzing existing cross correlation between PSI Software AG and Amkor Technology, you can compare the effects of market volatilities on PSI Software and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Amkor Technology.
Diversification Opportunities for PSI Software and Amkor Technology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PSI and Amkor is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of PSI Software i.e., PSI Software and Amkor Technology go up and down completely randomly.
Pair Corralation between PSI Software and Amkor Technology
Assuming the 90 days trading horizon PSI Software AG is expected to generate 0.5 times more return on investment than Amkor Technology. However, PSI Software AG is 2.0 times less risky than Amkor Technology. It trades about 0.01 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.03 per unit of risk. If you would invest 2,150 in PSI Software AG on September 1, 2024 and sell it today you would earn a total of 30.00 from holding PSI Software AG or generate 1.4% 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. Amkor Technology
Performance |
| Timeline |
| PSI Software AG |
| Amkor Technology |
PSI Software and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Amkor Technology
The main advantage of trading using opposite PSI Software and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| PSI Software vs. SAP SE | 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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