Correlation Between Palantir Technologies and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Palantir Technologies 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 Palantir Technologies and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palantir Technologies Class and Pintec Technology Holdings, you can compare the effects of market volatilities on Palantir Technologies 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 Palantir Technologies with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Pintec Technology.
Diversification Opportunities for Palantir Technologies and Pintec Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Palantir and Pintec is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Palantir Technologies 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 Palantir Technologies Class 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 Palantir Technologies i.e., Palantir Technologies and Pintec Technology go up and down completely randomly.
Pair Corralation between Palantir Technologies and Pintec Technology
Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 1.49 times more return on investment than Pintec Technology. However, Palantir Technologies is 1.49 times more volatile than Pintec Technology Holdings. It trades about 0.12 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 7,519 in Palantir Technologies Class on November 2, 2024 and sell it today you would earn a total of 603.00 from holding Palantir Technologies Class or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palantir Technologies Class vs. Pintec Technology Holdings
Performance |
| Timeline |
| Palantir Technologies |
| Pintec Technology |
Palantir Technologies and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and Pintec Technology
The main advantage of trading using opposite Palantir Technologies and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies 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.| Palantir Technologies vs. Palo Alto Networks | Palantir Technologies vs. Adobe Systems Incorporated | Palantir Technologies vs. Crowdstrike Holdings | Palantir Technologies vs. Zscaler |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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