Correlation Between Algoma Steel and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Algoma Steel and Pintec Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Algoma Steel and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Algoma Steel Group and Pintec Technology Holdings, you can compare the effects of market volatilities on Algoma Steel and Pintec Technology 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 Algoma Steel with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algoma Steel and Pintec Technology.
Diversification Opportunities for Algoma Steel and Pintec Technology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Algoma and Pintec is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Algoma Steel Group and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Algoma Steel 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 Algoma Steel Group are associated (or correlated) with Pintec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pintec Technology has no effect on the direction of Algoma Steel i.e., Algoma Steel and Pintec Technology go up and down completely randomly.
Pair Corralation between Algoma Steel and Pintec Technology
Given the investment horizon of 90 days Algoma Steel Group is expected to generate 1.0 times more return on investment than Pintec Technology. However, Algoma Steel is 1.0 times more volatile than Pintec Technology Holdings. It trades about 0.05 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.01 per unit of risk. If you would invest 1,037 in Algoma Steel Group on September 5, 2024 and sell it today you would earn a total of 25.00 from holding Algoma Steel Group or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Algoma Steel Group vs. Pintec Technology Holdings
Performance |
| Timeline |
| Algoma Steel Group |
| Pintec Technology |
Algoma Steel and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algoma Steel and Pintec Technology
The main advantage of trading using opposite Algoma Steel and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algoma Steel position performs unexpectedly, Pintec Technology 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 Pintec Technology will offset losses from the drop in Pintec Technology's long position.| Algoma Steel vs. Friedman Industries | Algoma Steel vs. ArcelorMittal SA | Algoma Steel vs. Aperam PK | Algoma Steel vs. Acerinox SA ADR |
| Pintec Technology vs. 360 Finance | Pintec Technology vs. Enova International | Pintec Technology vs. Yirendai | Pintec Technology vs. Navient Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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