Correlation Between Dupont De and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Dupont De 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 Dupont De and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Pintec Technology Holdings, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Pintec Technology.
Diversification Opportunities for Dupont De and Pintec Technology
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Pintec is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Pintec Technology go up and down completely randomly.
Pair Corralation between Dupont De and Pintec Technology
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.06 times less return on investment than Pintec Technology. But when comparing it to its historical volatility, Dupont De Nemours is 1.89 times less risky than Pintec Technology. It trades about 0.03 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Pintec Technology Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Pintec Technology Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Pintec Technology Holdings
Performance |
| Timeline |
| Dupont De Nemours |
| Pintec Technology |
Dupont De and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Pintec Technology
The main advantage of trading using opposite Dupont De and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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