Correlation Between Aurubis AG and PSI Software
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By analyzing existing cross correlation between Aurubis AG and PSI Software AG, you can compare the effects of market volatilities on Aurubis AG 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 Aurubis AG with a short position of PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurubis AG and PSI Software.
Diversification Opportunities for Aurubis AG and PSI Software
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurubis and PSI is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aurubis AG 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 Aurubis AG 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 Aurubis AG 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 Aurubis AG i.e., Aurubis AG and PSI Software go up and down completely randomly.
Pair Corralation between Aurubis AG and PSI Software
Assuming the 90 days trading horizon Aurubis AG is expected to generate 2.62 times more return on investment than PSI Software. However, Aurubis AG is 2.62 times more volatile than PSI Software AG. It trades about 0.05 of its potential returns per unit of risk. PSI Software AG is currently generating about -0.16 per unit of risk. If you would invest 7,605 in Aurubis AG on September 26, 2024 and sell it today you would earn a total of 165.00 from holding Aurubis AG or generate 2.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Aurubis AG vs. PSI Software AG
Performance |
Timeline |
Aurubis AG |
PSI Software AG |
Aurubis AG and PSI Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurubis AG and PSI Software
The main advantage of trading using opposite Aurubis AG and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurubis AG 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.Aurubis AG vs. PSI Software AG | Aurubis AG vs. Perseus Mining Limited | Aurubis AG vs. Zijin Mining Group | Aurubis AG vs. ATOSS SOFTWARE |
PSI Software vs. SAP SE | PSI Software vs. Nemetschek AG ON | PSI Software vs. Workiva | PSI Software vs. TeamViewer AG |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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