Correlation Between Pintec Technology and Arbor Realty
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Arbor Realty 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 Pintec Technology and Arbor Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pintec Technology Holdings and Arbor Realty Trust, you can compare the effects of market volatilities on Pintec Technology and Arbor Realty 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 Pintec Technology with a short position of Arbor Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Arbor Realty.
Diversification Opportunities for Pintec Technology and Arbor Realty
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Arbor is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Arbor Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Realty Trust and Pintec Technology 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 Pintec Technology Holdings are associated (or correlated) with Arbor Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Realty Trust has no effect on the direction of Pintec Technology i.e., Pintec Technology and Arbor Realty go up and down completely randomly.
Pair Corralation between Pintec Technology and Arbor Realty
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Arbor Realty. In addition to that, Pintec Technology is 2.64 times more volatile than Arbor Realty Trust. It trades about -0.03 of its total potential returns per unit of risk. Arbor Realty Trust is currently generating about 0.04 per unit of volatility. If you would invest 1,469 in Arbor Realty Trust on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Arbor Realty Trust or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Arbor Realty Trust
Performance |
| Timeline |
| Pintec Technology |
| Arbor Realty Trust |
Pintec Technology and Arbor Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Arbor Realty
The main advantage of trading using opposite Pintec Technology and Arbor Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Arbor Realty 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 Arbor Realty will offset losses from the drop in Arbor Realty's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai |
| Arbor Realty vs. Starwood Property Trust | Arbor Realty vs. Ready Capital Corp | Arbor Realty vs. Two Harbors Investments | Arbor Realty vs. AGNC Investment Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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