Correlation Between Naked Wines and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Naked Wines 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 Naked Wines and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naked Wines plc and Pintec Technology Holdings, you can compare the effects of market volatilities on Naked Wines 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 Naked Wines with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and Pintec Technology.
Diversification Opportunities for Naked Wines and Pintec Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Naked and Pintec is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Naked Wines 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 Naked Wines plc 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 Naked Wines i.e., Naked Wines and Pintec Technology go up and down completely randomly.
Pair Corralation between Naked Wines and Pintec Technology
Assuming the 90 days horizon Naked Wines plc is expected to under-perform the Pintec Technology. But the pink sheet apears to be less risky and, when comparing its historical volatility, Naked Wines plc is 2.76 times less risky than Pintec Technology. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Pintec Technology Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 103.00 in Pintec Technology Holdings on August 29, 2024 and sell it today you would lose (5.00) from holding Pintec Technology Holdings or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Naked Wines plc vs. Pintec Technology Holdings
Performance |
| Timeline |
| Naked Wines plc |
| Pintec Technology |
Naked Wines and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and Pintec Technology
The main advantage of trading using opposite Naked Wines and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines 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.| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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