Correlation Between PSI Software and INDOFOOD AGRI
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By analyzing existing cross correlation between PSI Software AG and INDOFOOD AGRI RES, you can compare the effects of market volatilities on PSI Software and INDOFOOD AGRI 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 INDOFOOD AGRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSI Software and INDOFOOD AGRI.
Diversification Opportunities for PSI Software and INDOFOOD AGRI
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSI and INDOFOOD is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PSI Software AG and INDOFOOD AGRI RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDOFOOD AGRI RES 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 INDOFOOD AGRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDOFOOD AGRI RES has no effect on the direction of PSI Software i.e., PSI Software and INDOFOOD AGRI go up and down completely randomly.
Pair Corralation between PSI Software and INDOFOOD AGRI
Assuming the 90 days trading horizon PSI Software AG is expected to generate 0.32 times more return on investment than INDOFOOD AGRI. However, PSI Software AG is 3.09 times less risky than INDOFOOD AGRI. It trades about 0.36 of its potential returns per unit of risk. INDOFOOD AGRI RES is currently generating about -0.08 per unit of risk. If you would invest 2,120 in PSI Software AG on November 7, 2024 and sell it today you would earn a total of 120.00 from holding PSI Software AG or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSI Software AG vs. INDOFOOD AGRI RES
Performance |
| Timeline |
| PSI Software AG |
| INDOFOOD AGRI RES |
PSI Software and INDOFOOD AGRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSI Software and INDOFOOD AGRI
The main advantage of trading using opposite PSI Software and INDOFOOD AGRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSI Software position performs unexpectedly, INDOFOOD AGRI 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 INDOFOOD AGRI will offset losses from the drop in INDOFOOD AGRI's long position.| PSI Software vs. ADRIATIC METALS LS 013355 | PSI Software vs. HEMISPHERE EGY | PSI Software vs. Cogent Communications Holdings | PSI Software vs. ecotel communication ag |
| INDOFOOD AGRI vs. BW OFFSHORE LTD | INDOFOOD AGRI vs. Eidesvik Offshore ASA | INDOFOOD AGRI vs. Adtalem Global Education | INDOFOOD AGRI vs. Perdoceo Education |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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