Correlation Between PSI Software and CDL INVESTMENT
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By analyzing existing cross correlation between PSI Software AG and CDL INVESTMENT, you can compare the effects of market volatilities on PSI Software and CDL INVESTMENT 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 CDL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and CDL INVESTMENT.
Diversification Opportunities for PSI Software and CDL INVESTMENT
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PSI and CDL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and CDL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDL INVESTMENT 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 CDL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDL INVESTMENT has no effect on the direction of PSI Software i.e., PSI Software and CDL INVESTMENT go up and down completely randomly.
Pair Corralation between PSI Software and CDL INVESTMENT
Assuming the 90 days trading horizon PSI Software AG is expected to under-perform the CDL INVESTMENT. But the stock apears to be less risky and, when comparing its historical volatility, PSI Software AG is 1.13 times less risky than CDL INVESTMENT. The stock trades about -0.01 of its potential returns per unit of risk. The CDL INVESTMENT is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 37.00 in CDL INVESTMENT on September 4, 2024 and sell it today you would earn a total of 6.00 from holding CDL INVESTMENT or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. CDL INVESTMENT
Performance |
| Timeline |
| PSI Software AG |
| CDL INVESTMENT |
PSI Software and CDL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and CDL INVESTMENT
The main advantage of trading using opposite PSI Software and CDL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, CDL INVESTMENT 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 CDL INVESTMENT will offset losses from the drop in CDL INVESTMENT's long position.| PSI Software vs. Rocket Internet SE | PSI Software vs. Superior Plus Corp | PSI Software vs. NMI Holdings | PSI Software vs. Origin Agritech |
| CDL INVESTMENT vs. TOTAL GABON | CDL INVESTMENT vs. Walgreens Boots Alliance | CDL INVESTMENT vs. Peak Resources Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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