Correlation Between Yuexiu Transport and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Pintec Technology Holdings, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Pintec Technology.
Diversification Opportunities for Yuexiu Transport and Pintec Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Pintec is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Pintec Technology go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Pintec Technology
Assuming the 90 days horizon Yuexiu Transport is expected to generate 1.04 times less return on investment than Pintec Technology. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 7.3 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Pintec Technology Holdings on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Pintec Technology Holdings or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Pintec Technology Holdings
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Pintec Technology |
Yuexiu Transport and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Pintec Technology
The main advantage of trading using opposite Yuexiu Transport and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |