Correlation Between NH Hotel and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both NH Hotel 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 NH Hotel and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Hotel Group and Pintec Technology Holdings, you can compare the effects of market volatilities on NH Hotel 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 NH Hotel with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Hotel and Pintec Technology.
Diversification Opportunities for NH Hotel and Pintec Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NHHEF and Pintec is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding NH Hotel Group and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and NH Hotel 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 NH Hotel Group 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 NH Hotel i.e., NH Hotel and Pintec Technology go up and down completely randomly.
Pair Corralation between NH Hotel and Pintec Technology
Assuming the 90 days horizon NH Hotel Group is expected to generate 2.51 times more return on investment than Pintec Technology. However, NH Hotel is 2.51 times more volatile than Pintec Technology Holdings. It trades about 0.22 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about -0.04 per unit of risk. If you would invest 390.00 in NH Hotel Group on October 10, 2024 and sell it today you would earn a total of 150.00 from holding NH Hotel Group or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Hotel Group vs. Pintec Technology Holdings
Performance |
| Timeline |
| NH Hotel Group |
| Pintec Technology |
NH Hotel and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Hotel and Pintec Technology
The main advantage of trading using opposite NH Hotel and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Hotel 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.| NH Hotel vs. Pintec Technology Holdings | NH Hotel vs. Grocery Outlet Holding | NH Hotel vs. BBB Foods | NH Hotel vs. Univest Pennsylvania |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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