Correlation Between Entegris and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Entegris 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 Entegris and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Pintec Technology Holdings, you can compare the effects of market volatilities on Entegris 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 Entegris with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Pintec Technology.
Diversification Opportunities for Entegris and Pintec Technology
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Entegris and Pintec is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Entegris 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 Entegris 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 Entegris i.e., Entegris and Pintec Technology go up and down completely randomly.
Pair Corralation between Entegris and Pintec Technology
Given the investment horizon of 90 days Entegris is expected to generate 2.14 times less return on investment than Pintec Technology. But when comparing it to its historical volatility, Entegris is 1.59 times less risky than Pintec Technology. It trades about 0.14 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Pintec Technology Holdings on October 22, 2024 and sell it today you would earn a total of 8.00 from holding Pintec Technology Holdings or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entegris vs. Pintec Technology Holdings
Performance |
| Timeline |
| Entegris |
| Pintec Technology |
Entegris and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Pintec Technology
The main advantage of trading using opposite Entegris and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris 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.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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