Correlation Between PSI Software and Take Two
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By analyzing existing cross correlation between PSI Software AG and Take Two Interactive Software, you can compare the effects of market volatilities on PSI Software and Take Two 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 Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Take Two.
Diversification Opportunities for PSI Software and Take Two
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSI and Take is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of PSI Software i.e., PSI Software and Take Two go up and down completely randomly.
Pair Corralation between PSI Software and Take Two
Assuming the 90 days trading horizon PSI Software is expected to generate 6.15 times less return on investment than Take Two. In addition to that, PSI Software is 1.03 times more volatile than Take Two Interactive Software. It trades about 0.01 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.09 per unit of volatility. If you would invest 14,894 in Take Two Interactive Software on September 1, 2024 and sell it today you would earn a total of 3,004 from holding Take Two Interactive Software or generate 20.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. Take Two Interactive Software
Performance |
| Timeline |
| PSI Software AG |
| Take Two Interactive |
PSI Software and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Take Two
The main advantage of trading using opposite PSI Software and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| PSI Software vs. SAP SE | PSI Software vs. Superior Plus Corp | PSI Software vs. NMI Holdings | PSI Software vs. Origin Agritech |
| Take Two vs. Nintendo Co | Take Two vs. Sea Limited | Take Two vs. Superior Plus Corp | Take Two vs. NMI Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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