Correlation Between Moelis and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Moelis 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 Moelis and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moelis Co and Pintec Technology Holdings, you can compare the effects of market volatilities on Moelis 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 Moelis with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moelis and Pintec Technology.
Diversification Opportunities for Moelis and Pintec Technology
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Moelis and Pintec is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Moelis 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 Moelis 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 Moelis 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 Moelis i.e., Moelis and Pintec Technology go up and down completely randomly.
Pair Corralation between Moelis and Pintec Technology
Allowing for the 90-day total investment horizon Moelis Co is expected to generate 0.76 times more return on investment than Pintec Technology. However, Moelis Co is 1.31 times less risky than Pintec Technology. It trades about 0.13 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.1 per unit of risk. If you would invest 7,420 in Moelis Co on November 2, 2024 and sell it today you would earn a total of 357.00 from holding Moelis Co or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moelis Co vs. Pintec Technology Holdings
Performance |
| Timeline |
| Moelis |
| Pintec Technology |
Moelis and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moelis and Pintec Technology
The main advantage of trading using opposite Moelis and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moelis 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.| Moelis vs. PJT Partners | Moelis vs. Houlihan Lokey | Moelis vs. Piper Sandler Companies | Moelis vs. Perella Weinberg Partners |
| Pintec Technology vs. Visa Class A | Pintec Technology vs. PayPal Holdings | Pintec Technology vs. Mastercard |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |