Correlation Between Gannett and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Gannett 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 Gannett and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gannett Co and Pintec Technology Holdings, you can compare the effects of market volatilities on Gannett 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 Gannett with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gannett and Pintec Technology.
Diversification Opportunities for Gannett and Pintec Technology
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gannett and Pintec is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gannett Co and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Gannett 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 Gannett Co 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 Gannett i.e., Gannett and Pintec Technology go up and down completely randomly.
Pair Corralation between Gannett and Pintec Technology
Considering the 90-day investment horizon Gannett Co is expected to generate 1.18 times more return on investment than Pintec Technology. However, Gannett is 1.18 times more volatile than Pintec Technology Holdings. It trades about -0.07 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about -0.13 per unit of risk. If you would invest 544.00 in Gannett Co on October 9, 2024 and sell it today you would lose (29.00) from holding Gannett Co or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gannett Co vs. Pintec Technology Holdings
Performance |
| Timeline |
| Gannett |
| Pintec Technology |
Gannett and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gannett and Pintec Technology
The main advantage of trading using opposite Gannett and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gannett 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.| Gannett vs. Dallasnews Corp | Gannett vs. Scholastic | Gannett vs. Pearson PLC ADR | Gannett vs. New York Times |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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