Correlation Between Rocket Internet and PSI Software
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By analyzing existing cross correlation between Rocket Internet SE and PSI Software AG, you can compare the effects of market volatilities on Rocket Internet and PSI Software 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 Rocket Internet with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket Internet and PSI Software.
Diversification Opportunities for Rocket Internet and PSI Software
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rocket and PSI is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Internet SE and PSI Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSI Software AG and Rocket Internet 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 Rocket Internet SE are associated (or correlated) with PSI Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSI Software AG has no effect on the direction of Rocket Internet i.e., Rocket Internet and PSI Software go up and down completely randomly.
Pair Corralation between Rocket Internet and PSI Software
Assuming the 90 days trading horizon Rocket Internet SE is expected to generate 0.84 times more return on investment than PSI Software. However, Rocket Internet SE is 1.19 times less risky than PSI Software. It trades about 0.07 of its potential returns per unit of risk. PSI Software AG is currently generating about -0.09 per unit of risk. If you would invest 1,430 in Rocket Internet SE on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Rocket Internet SE or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rocket Internet SE vs. PSI Software AG
Performance |
| Timeline |
| Rocket Internet SE |
| PSI Software AG |
Rocket Internet and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket Internet and PSI Software
The main advantage of trading using opposite Rocket Internet and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Internet position performs unexpectedly, PSI Software 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 PSI Software will offset losses from the drop in PSI Software's long position.| Rocket Internet vs. Salesforce | Rocket Internet vs. Superior Plus Corp | Rocket Internet vs. SIVERS SEMICONDUCTORS AB | Rocket Internet vs. Norsk Hydro ASA |
| PSI Software vs. Ramsay Health Care | PSI Software vs. Cleanaway Waste Management | PSI Software vs. CVS Health | PSI Software vs. Waste Management |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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