Correlation Between Pintec Technology and Algoma Steel
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Algoma Steel 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 Algoma Steel 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 Algoma Steel Group, you can compare the effects of market volatilities on Pintec Technology and Algoma Steel 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 Algoma Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Algoma Steel.
Diversification Opportunities for Pintec Technology and Algoma Steel
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Algoma is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Algoma Steel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algoma Steel Group 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 Algoma Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algoma Steel Group has no effect on the direction of Pintec Technology i.e., Pintec Technology and Algoma Steel go up and down completely randomly.
Pair Corralation between Pintec Technology and Algoma Steel
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Algoma Steel. In addition to that, Pintec Technology is 2.01 times more volatile than Algoma Steel Group. It trades about -0.01 of its total potential returns per unit of risk. Algoma Steel Group is currently generating about 0.02 per unit of volatility. If you would invest 998.00 in Algoma Steel Group on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Algoma Steel Group or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Algoma Steel Group
Performance |
| Timeline |
| Pintec Technology |
| Algoma Steel Group |
Pintec Technology and Algoma Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Algoma Steel
The main advantage of trading using opposite Pintec Technology and Algoma Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Algoma Steel 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 Algoma Steel will offset losses from the drop in Algoma Steel's long position.| Pintec Technology vs. Visa Class A | Pintec Technology vs. PayPal Holdings | Pintec Technology vs. Capital One Financial | Pintec Technology vs. Upstart Holdings |
| Algoma Steel vs. Olympic Steel | Algoma Steel vs. Steel Dynamics | Algoma Steel vs. Commercial Metals | Algoma Steel vs. Nucor 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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