Correlation Between DUET Acquisition and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both DUET Acquisition 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 DUET Acquisition and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DUET Acquisition Corp and Pintec Technology Holdings, you can compare the effects of market volatilities on DUET Acquisition 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 DUET Acquisition with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of DUET Acquisition and Pintec Technology.
Diversification Opportunities for DUET Acquisition and Pintec Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DUET and Pintec is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding DUET Acquisition Corp and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and DUET Acquisition 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 DUET Acquisition Corp 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 DUET Acquisition i.e., DUET Acquisition and Pintec Technology go up and down completely randomly.
Pair Corralation between DUET Acquisition and Pintec Technology
Given the investment horizon of 90 days DUET Acquisition is expected to generate 8.34 times less return on investment than Pintec Technology. But when comparing it to its historical volatility, DUET Acquisition Corp is 19.21 times less risky than Pintec Technology. It trades about 0.11 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Pintec Technology Holdings on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Pintec Technology Holdings or generate 81.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
DUET Acquisition Corp vs. Pintec Technology Holdings
Performance |
| Timeline |
| DUET Acquisition Corp |
| Pintec Technology |
DUET Acquisition and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DUET Acquisition and Pintec Technology
The main advantage of trading using opposite DUET Acquisition and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DUET Acquisition 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.| DUET Acquisition vs. ClimateRock Class A | DUET Acquisition vs. CF Acquisition VII | DUET Acquisition vs. DP Cap Acquisition |
| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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