Correlation Between Pintec Technology and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Federal Agricultural 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 Federal Agricultural 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 Federal Agricultural Mortgage, you can compare the effects of market volatilities on Pintec Technology and Federal Agricultural 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 Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Federal Agricultural.
Diversification Opportunities for Pintec Technology and Federal Agricultural
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pintec and Federal is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural 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 Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of Pintec Technology i.e., Pintec Technology and Federal Agricultural go up and down completely randomly.
Pair Corralation between Pintec Technology and Federal Agricultural
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.24 times more return on investment than Federal Agricultural. However, Pintec Technology is 2.24 times more volatile than Federal Agricultural Mortgage. It trades about 0.21 of its potential returns per unit of risk. Federal Agricultural Mortgage is currently generating about 0.16 per unit of risk. If you would invest 90.00 in Pintec Technology Holdings on October 20, 2024 and sell it today you would earn a total of 10.00 from holding Pintec Technology Holdings or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Federal Agricultural Mortgage
Performance |
| Timeline |
| Pintec Technology |
| Federal Agricultural |
Pintec Technology and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Federal Agricultural
The main advantage of trading using opposite Pintec Technology and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| Pintec Technology vs. Upstart Holdings | Pintec Technology vs. Affirm Holdings | Pintec Technology vs. Lucid Group | Pintec Technology vs. Palantir Technologies Class |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |