Correlation Between PSI Software and ELECTRONIC ARTS
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By analyzing existing cross correlation between PSI Software AG and ELECTRONIC ARTS, you can compare the effects of market volatilities on PSI Software and ELECTRONIC ARTS 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 ELECTRONIC ARTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and ELECTRONIC ARTS.
Diversification Opportunities for PSI Software and ELECTRONIC ARTS
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSI and ELECTRONIC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and ELECTRONIC ARTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELECTRONIC ARTS 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 ELECTRONIC ARTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELECTRONIC ARTS has no effect on the direction of PSI Software i.e., PSI Software and ELECTRONIC ARTS go up and down completely randomly.
Pair Corralation between PSI Software and ELECTRONIC ARTS
Assuming the 90 days trading horizon PSI Software AG is expected to under-perform the ELECTRONIC ARTS. In addition to that, PSI Software is 1.68 times more volatile than ELECTRONIC ARTS. It trades about -0.05 of its total potential returns per unit of risk. ELECTRONIC ARTS is currently generating about 0.06 per unit of volatility. If you would invest 11,618 in ELECTRONIC ARTS on August 31, 2024 and sell it today you would earn a total of 3,802 from holding ELECTRONIC ARTS or generate 32.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
PSI Software AG vs. ELECTRONIC ARTS
Performance |
| Timeline |
| PSI Software AG |
| ELECTRONIC ARTS |
PSI Software and ELECTRONIC ARTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and ELECTRONIC ARTS
The main advantage of trading using opposite PSI Software and ELECTRONIC ARTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, ELECTRONIC ARTS 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 ELECTRONIC ARTS will offset losses from the drop in ELECTRONIC ARTS's long position.| PSI Software vs. Nok Airlines PCL | PSI Software vs. OAKTRSPECLENDNEW | PSI Software vs. QBE Insurance Group | PSI Software vs. SINGAPORE AIRLINES |
| ELECTRONIC ARTS vs. SIVERS SEMICONDUCTORS AB | ELECTRONIC ARTS vs. Darden Restaurants | ELECTRONIC ARTS vs. Reliance Steel Aluminum | ELECTRONIC ARTS vs. Q2M Managementberatung AG |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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