Correlation Between SMA Solar and PSI Software
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By analyzing existing cross correlation between SMA Solar Technology and PSI Software AG, you can compare the effects of market volatilities on SMA Solar 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 SMA Solar with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and PSI Software.
Diversification Opportunities for SMA Solar and PSI Software
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between SMA and PSI is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology 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 SMA Solar 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 SMA Solar Technology 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 SMA Solar i.e., SMA Solar and PSI Software go up and down completely randomly.
Pair Corralation between SMA Solar and PSI Software
Assuming the 90 days trading horizon SMA Solar Technology is expected to under-perform the PSI Software. In addition to that, SMA Solar is 1.63 times more volatile than PSI Software AG. It trades about -0.07 of its total potential returns per unit of risk. PSI Software AG is currently generating about 0.01 per unit of volatility. If you would invest 2,248 in PSI Software AG on September 1, 2024 and sell it today you would lose (68.00) from holding PSI Software AG or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SMA Solar Technology vs. PSI Software AG
Performance |
| Timeline |
| SMA Solar Technology |
| PSI Software AG |
SMA Solar and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and PSI Software
The main advantage of trading using opposite SMA Solar and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar 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.| SMA Solar vs. PSI Software AG | SMA Solar vs. Alfa Financial Software | SMA Solar vs. Major Drilling Group | SMA Solar vs. ATOSS SOFTWARE |
| PSI Software vs. SAP SE | PSI Software vs. Superior Plus Corp | PSI Software vs. NMI Holdings | PSI Software vs. Origin Agritech |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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