Correlation Between PSI Software and Lendlease
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By analyzing existing cross correlation between PSI Software AG and Lendlease Group, you can compare the effects of market volatilities on PSI Software and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Lendlease.
Diversification Opportunities for PSI Software and Lendlease
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PSI and Lendlease is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of PSI Software i.e., PSI Software and Lendlease go up and down completely randomly.
Pair Corralation between PSI Software and Lendlease
Assuming the 90 days trading horizon PSI Software AG is expected to under-perform the Lendlease. But the stock apears to be less risky and, when comparing its historical volatility, PSI Software AG is 1.22 times less risky than Lendlease. The stock trades about -0.1 of its potential returns per unit of risk. The Lendlease Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 406.00 in Lendlease Group on September 5, 2024 and sell it today you would earn a total of 31.00 from holding Lendlease Group or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PSI Software AG vs. Lendlease Group
Performance |
| Timeline |
| PSI Software AG |
| Lendlease Group |
PSI Software and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Lendlease
The main advantage of trading using opposite PSI Software and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| PSI Software vs. Superior Plus Corp | PSI Software vs. NMI Holdings | PSI Software vs. Origin Agritech | PSI Software 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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