Correlation Between PSI Software and Take-Two Interactive
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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 Interactive 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 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and Take-Two Interactive.
Diversification Opportunities for PSI Software and Take-Two Interactive
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PSI and Take-Two is -0.75. 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 Interactive. 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 Interactive go up and down completely randomly.
Pair Corralation between PSI Software and Take-Two Interactive
Assuming the 90 days trading horizon PSI Software AG is expected to under-perform the Take-Two Interactive. But the stock apears to be less risky and, when comparing its historical volatility, PSI Software AG is 1.31 times less risky than Take-Two Interactive. The stock trades about -0.07 of its potential returns per unit of risk. The Take Two Interactive Software is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 13,880 in Take Two Interactive Software on September 12, 2024 and sell it today you would earn a total of 3,714 from holding Take Two Interactive Software or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| 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 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and Take-Two Interactive
The main advantage of trading using opposite PSI Software and Take-Two Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, Take-Two Interactive 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 Interactive will offset losses from the drop in Take-Two Interactive's long position.| PSI Software vs. Ramsay Health Care | PSI Software vs. Cleanaway Waste Management | PSI Software vs. CVS Health | PSI Software vs. Waste Management |
| Take-Two Interactive vs. NEXON Co | Take-Two Interactive vs. Superior Plus Corp | Take-Two Interactive vs. SIVERS SEMICONDUCTORS AB | Take-Two Interactive vs. Norsk Hydro ASA |
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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