Correlation Between PSI Software and Strategic Investments
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By analyzing existing cross correlation between PSI Software AG and Strategic Investments AS, you can compare the effects of market volatilities on PSI Software and Strategic Investments 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 Strategic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Strategic Investments.
Diversification Opportunities for PSI Software and Strategic Investments
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PSI and Strategic is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Strategic Investments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Investments 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 Strategic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Investments has no effect on the direction of PSI Software i.e., PSI Software and Strategic Investments go up and down completely randomly.
Pair Corralation between PSI Software and Strategic Investments
Assuming the 90 days trading horizon PSI Software AG is expected to under-perform the Strategic Investments. But the stock apears to be less risky and, when comparing its historical volatility, PSI Software AG is 4.96 times less risky than Strategic Investments. The stock trades about -0.07 of its potential returns per unit of risk. The Strategic Investments AS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Strategic Investments AS on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Strategic Investments AS or generate 7.69% 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. Strategic Investments AS
Performance |
| Timeline |
| PSI Software AG |
| Strategic Investments |
PSI Software and Strategic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Strategic Investments
The main advantage of trading using opposite PSI Software and Strategic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Strategic Investments 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 Strategic Investments will offset losses from the drop in Strategic Investments' long position.| PSI Software vs. Nemetschek AG ON | PSI Software vs. Superior Plus Corp | PSI Software vs. NMI Holdings | PSI Software vs. Origin Agritech |
| Strategic Investments vs. The Bank of | Strategic Investments vs. Superior Plus Corp | Strategic Investments vs. NMI Holdings | Strategic Investments 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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