Correlation Between PSI Software and Prosiebensat
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By analyzing existing cross correlation between PSI Software AG and Prosiebensat 1 Media, you can compare the effects of market volatilities on PSI Software and Prosiebensat 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 Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Prosiebensat.
Diversification Opportunities for PSI Software and Prosiebensat
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PSI and Prosiebensat is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media 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 Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of PSI Software i.e., PSI Software and Prosiebensat go up and down completely randomly.
Pair Corralation between PSI Software and Prosiebensat
Assuming the 90 days trading horizon PSI Software AG is expected to generate 0.88 times more return on investment than Prosiebensat. However, PSI Software AG is 1.14 times less risky than Prosiebensat. It trades about 0.01 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.01 per unit of risk. If you would invest 2,767 in PSI Software AG on December 4, 2024 and sell it today you would lose (47.00) from holding PSI Software AG or give up 1.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PSI Software AG vs. Prosiebensat 1 Media
Performance |
| Timeline |
| PSI Software AG |
| Prosiebensat 1 Media |
PSI Software and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Prosiebensat
The main advantage of trading using opposite PSI Software and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| PSI Software vs. EVS Broadcast Equipment | PSI Software vs. CyberArk Software | PSI Software vs. PSI Software AG | PSI Software vs. GBS Software AG |
| Prosiebensat vs. PPHE HOTEL GROUP | Prosiebensat vs. Meli Hotels International | Prosiebensat vs. GRUPO CARSO A1 | Prosiebensat vs. NH HOTEL GROUP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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