Correlation Between PSI Software and SINGAPORE AIRLINES
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By analyzing existing cross correlation between PSI Software AG and SINGAPORE AIRLINES, you can compare the effects of market volatilities on PSI Software and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and SINGAPORE AIRLINES.
Diversification Opportunities for PSI Software and SINGAPORE AIRLINES
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between PSI and SINGAPORE is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of PSI Software i.e., PSI Software and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between PSI Software and SINGAPORE AIRLINES
Assuming the 90 days trading horizon PSI Software AG is expected to under-perform the SINGAPORE AIRLINES. But the stock apears to be less risky and, when comparing its historical volatility, PSI Software AG is 1.23 times less risky than SINGAPORE AIRLINES. The stock trades about -0.07 of its potential returns per unit of risk. The SINGAPORE AIRLINES is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 433.00 in SINGAPORE AIRLINES on September 12, 2024 and sell it today you would earn a total of 21.00 from holding SINGAPORE AIRLINES or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| PSI Software AG |
| SINGAPORE AIRLINES |
PSI Software and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and SINGAPORE AIRLINES
The main advantage of trading using opposite PSI Software and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES'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 |
| SINGAPORE AIRLINES vs. Ramsay Health Care | SINGAPORE AIRLINES vs. FEMALE HEALTH | SINGAPORE AIRLINES vs. GUARDANT HEALTH CL | SINGAPORE AIRLINES vs. American Eagle Outfitters |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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