Correlation Between Graham Holdings and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Graham Holdings 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 Graham Holdings and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Pintec Technology Holdings, you can compare the effects of market volatilities on Graham Holdings 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 Graham Holdings with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Pintec Technology.
Diversification Opportunities for Graham Holdings and Pintec Technology
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graham and Pintec is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings 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 Graham Holdings 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 Graham Holdings 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 Graham Holdings i.e., Graham Holdings and Pintec Technology go up and down completely randomly.
Pair Corralation between Graham Holdings and Pintec Technology
Considering the 90-day investment horizon Graham Holdings Co is expected to generate 0.57 times more return on investment than Pintec Technology. However, Graham Holdings Co is 1.74 times less risky than Pintec Technology. It trades about -0.22 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 95,074 in Graham Holdings Co on October 9, 2024 and sell it today you would lose (6,639) from holding Graham Holdings Co or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham Holdings Co vs. Pintec Technology Holdings
Performance |
| Timeline |
| Graham Holdings |
| Pintec Technology |
Graham Holdings and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Pintec Technology
The main advantage of trading using opposite Graham Holdings and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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.| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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