Correlation Between Pintec Technology and AlphaVest Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and AlphaVest Acquisition 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 AlphaVest Acquisition 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 AlphaVest Acquisition Corp, you can compare the effects of market volatilities on Pintec Technology and AlphaVest Acquisition 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 AlphaVest Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and AlphaVest Acquisition.
Diversification Opportunities for Pintec Technology and AlphaVest Acquisition
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and AlphaVest is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and AlphaVest Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaVest Acquisition 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 AlphaVest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaVest Acquisition has no effect on the direction of Pintec Technology i.e., Pintec Technology and AlphaVest Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and AlphaVest Acquisition
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the AlphaVest Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Pintec Technology Holdings is 49.44 times less risky than AlphaVest Acquisition. The stock trades about -0.01 of its potential returns per unit of risk. The AlphaVest Acquisition Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 10.00 in AlphaVest Acquisition Corp on September 4, 2024 and sell it today you would earn a total of 4.00 from holding AlphaVest Acquisition Corp or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. AlphaVest Acquisition Corp
Performance |
| Timeline |
| Pintec Technology |
| AlphaVest Acquisition |
Pintec Technology and AlphaVest Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and AlphaVest Acquisition
The main advantage of trading using opposite Pintec Technology and AlphaVest Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, AlphaVest Acquisition 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 AlphaVest Acquisition will offset losses from the drop in AlphaVest Acquisition's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| AlphaVest Acquisition vs. Visa Class A | AlphaVest Acquisition vs. Diamond Hill Investment | AlphaVest Acquisition vs. Distoken Acquisition | AlphaVest Acquisition vs. AllianceBernstein Holding LP |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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