Correlation Between PSI Software and FUYO GENERAL
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By analyzing existing cross correlation between PSI Software AG and FUYO GENERAL LEASE, you can compare the effects of market volatilities on PSI Software and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and FUYO GENERAL.
Diversification Opportunities for PSI Software and FUYO GENERAL
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSI and FUYO is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of PSI Software i.e., PSI Software and FUYO GENERAL go up and down completely randomly.
Pair Corralation between PSI Software and FUYO GENERAL
Assuming the 90 days trading horizon PSI Software is expected to generate 4.2 times less return on investment than FUYO GENERAL. In addition to that, PSI Software is 1.51 times more volatile than FUYO GENERAL LEASE. It trades about 0.0 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.02 per unit of volatility. If you would invest 6,050 in FUYO GENERAL LEASE on September 13, 2024 and sell it today you would earn a total of 850.00 from holding FUYO GENERAL LEASE or generate 14.05% 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. FUYO GENERAL LEASE
Performance |
| Timeline |
| PSI Software AG |
| FUYO GENERAL LEASE |
PSI Software and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and FUYO GENERAL
The main advantage of trading using opposite PSI Software and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| PSI Software vs. Salesforce | PSI Software vs. Superior Plus Corp | PSI Software vs. SIVERS SEMICONDUCTORS AB | PSI Software vs. Norsk Hydro ASA |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. SIVERS SEMICONDUCTORS AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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