Correlation Between SINGAPORE AIRLINES and PSI Software
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By analyzing existing cross correlation between SINGAPORE AIRLINES and PSI Software AG, you can compare the effects of market volatilities on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and PSI Software.
Diversification Opportunities for SINGAPORE AIRLINES and PSI Software
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SINGAPORE and PSI is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and PSI Software go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and PSI Software
Assuming the 90 days trading horizon SINGAPORE AIRLINES is expected to generate 0.56 times more return on investment than PSI Software. However, SINGAPORE AIRLINES is 1.79 times less risky than PSI Software. It trades about 0.06 of its potential returns per unit of risk. PSI Software AG is currently generating about 0.01 per unit of risk. If you would invest 316.00 in SINGAPORE AIRLINES on September 2, 2024 and sell it today you would earn a total of 124.00 from holding SINGAPORE AIRLINES or generate 39.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. PSI Software AG
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| PSI Software AG |
SINGAPORE AIRLINES and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and PSI Software
The main advantage of trading using opposite SINGAPORE AIRLINES and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE AIRLINES 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.| SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB | SINGAPORE AIRLINES vs. Darden Restaurants | SINGAPORE AIRLINES vs. Reliance Steel Aluminum | SINGAPORE AIRLINES vs. Q2M Managementberatung AG |
| PSI Software vs. LG Display Co | PSI Software vs. Magnachip Semiconductor | PSI Software vs. BE Semiconductor Industries | PSI Software vs. ELMOS SEMICONDUCTOR |
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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