Correlation Between Getty Images and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Getty Images 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 Getty Images and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Images Holdings and Pintec Technology Holdings, you can compare the effects of market volatilities on Getty Images 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 Getty Images with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Pintec Technology.
Diversification Opportunities for Getty Images and Pintec Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Getty and Pintec is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Getty Images 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 Getty Images Holdings 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 Getty Images i.e., Getty Images and Pintec Technology go up and down completely randomly.
Pair Corralation between Getty Images and Pintec Technology
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Pintec Technology. In addition to that, Getty Images is 1.76 times more volatile than Pintec Technology Holdings. It trades about -0.28 of its total potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.0 per unit of volatility. If you would invest 97.00 in Pintec Technology Holdings on September 1, 2024 and sell it today you would lose (1.00) from holding Pintec Technology Holdings or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. Pintec Technology Holdings
Performance |
| Timeline |
| Getty Images Holdings |
| Pintec Technology |
Getty Images and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Pintec Technology
The main advantage of trading using opposite Getty Images and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images 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.| Getty Images vs. MediaAlpha | Getty Images vs. Asset Entities Class | Getty Images vs. Shutterstock | Getty Images vs. Match Group |
| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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