Correlation Between Independence Realty and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Independence Realty 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 Independence Realty and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Realty Trust and Pintec Technology Holdings, you can compare the effects of market volatilities on Independence Realty 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 Independence Realty with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Realty and Pintec Technology.
Diversification Opportunities for Independence Realty and Pintec Technology
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Independence and Pintec is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Independence Realty Trust and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Independence Realty 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 Independence Realty Trust 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 Independence Realty i.e., Independence Realty and Pintec Technology go up and down completely randomly.
Pair Corralation between Independence Realty and Pintec Technology
Considering the 90-day investment horizon Independence Realty Trust is expected to generate 0.45 times more return on investment than Pintec Technology. However, Independence Realty Trust is 2.24 times less risky than Pintec Technology. It trades about 0.38 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,962 in Independence Realty Trust on September 1, 2024 and sell it today you would earn a total of 222.00 from holding Independence Realty Trust or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Independence Realty Trust vs. Pintec Technology Holdings
Performance |
| Timeline |
| Independence Realty Trust |
| Pintec Technology |
Independence Realty and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Realty and Pintec Technology
The main advantage of trading using opposite Independence Realty and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Realty 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.| Independence Realty vs. Apartment Investment and | Independence Realty vs. Clipper Realty | Independence Realty vs. BRT Realty Trust | Independence Realty vs. UDR Inc |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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