Correlation Between PSI Software and Summit Hotel
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By analyzing existing cross correlation between PSI Software AG and Summit Hotel Properties, you can compare the effects of market volatilities on PSI Software and Summit Hotel 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 Summit Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Summit Hotel.
Diversification Opportunities for PSI Software and Summit Hotel
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PSI and Summit is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Summit Hotel Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Hotel Properties 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 Summit Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Hotel Properties has no effect on the direction of PSI Software i.e., PSI Software and Summit Hotel go up and down completely randomly.
Pair Corralation between PSI Software and Summit Hotel
Assuming the 90 days trading horizon PSI Software AG is expected to generate 1.12 times more return on investment than Summit Hotel. However, PSI Software is 1.12 times more volatile than Summit Hotel Properties. It trades about 0.01 of its potential returns per unit of risk. Summit Hotel Properties is currently generating about 0.0 per unit of risk. If you would invest 2,244 in PSI Software AG on September 3, 2024 and sell it today you would lose (64.00) from holding PSI Software AG or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. Summit Hotel Properties
Performance |
| Timeline |
| PSI Software AG |
| Summit Hotel Properties |
PSI Software and Summit Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Summit Hotel
The main advantage of trading using opposite PSI Software and Summit Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Summit Hotel 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 Summit Hotel will offset losses from the drop in Summit Hotel's long position.| PSI Software vs. PUBLIC STORAGE PRFO | PSI Software vs. YOOMA WELLNESS INC | PSI Software vs. CVS Health | PSI Software vs. Major Drilling Group |
| Summit Hotel vs. PSI Software AG | Summit Hotel vs. Cogent Communications Holdings | Summit Hotel vs. CyberArk Software | Summit Hotel vs. INTERSHOP Communications Aktiengesellschaft |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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