Correlation Between PSI Software and GameStop Corp
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By analyzing existing cross correlation between PSI Software AG and GameStop Corp, you can compare the effects of market volatilities on PSI Software and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and GameStop Corp.
Diversification Opportunities for PSI Software and GameStop Corp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSI and GameStop is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of PSI Software i.e., PSI Software and GameStop Corp go up and down completely randomly.
Pair Corralation between PSI Software and GameStop Corp
Assuming the 90 days trading horizon PSI Software AG is expected to generate 1.61 times more return on investment than GameStop Corp. However, PSI Software is 1.61 times more volatile than GameStop Corp. It trades about 0.18 of its potential returns per unit of risk. GameStop Corp is currently generating about -0.17 per unit of risk. If you would invest 2,190 in PSI Software AG on November 29, 2024 and sell it today you would earn a total of 370.00 from holding PSI Software AG or generate 16.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. GameStop Corp
Performance |
| Timeline |
| PSI Software AG |
| GameStop Corp |
PSI Software and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and GameStop Corp
The main advantage of trading using opposite PSI Software and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| PSI Software vs. Information Services International Dentsu | PSI Software vs. SILVER BULLET DATA | PSI Software vs. Datalogic SpA | PSI Software vs. Broadcom |
| GameStop Corp vs. SK TELECOM TDADR | GameStop Corp vs. PLAYWAY SA ZY 10 | GameStop Corp vs. Ribbon Communications | GameStop Corp vs. PLAYSTUDIOS A DL 0001 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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