Correlation Between Carters and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Carters 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 Carters and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carters and Pintec Technology Holdings, you can compare the effects of market volatilities on Carters 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 Carters with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carters and Pintec Technology.
Diversification Opportunities for Carters and Pintec Technology
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carters and Pintec is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Carters and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Carters 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 Carters 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 Carters i.e., Carters and Pintec Technology go up and down completely randomly.
Pair Corralation between Carters and Pintec Technology
Considering the 90-day investment horizon Carters is expected to under-perform the Pintec Technology. But the stock apears to be less risky and, when comparing its historical volatility, Carters is 2.28 times less risky than Pintec Technology. The stock trades about -0.02 of its potential returns per unit of risk. The Pintec Technology Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Pintec Technology Holdings on September 26, 2024 and sell it today you would earn a total of 48.00 from holding Pintec Technology Holdings or generate 111.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carters vs. Pintec Technology Holdings
Performance |
| Timeline |
| Carters |
| Pintec Technology |
Carters and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carters and Pintec Technology
The main advantage of trading using opposite Carters and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carters 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.| Carters vs. Amer Sports, | Carters vs. Brunswick | Carters vs. BRP Inc | Carters vs. Vision Marine Technologies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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