Correlation Between Pintec Technology and Broad Capital
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Broad Capital 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 Broad Capital 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 Broad Capital Acquisition, you can compare the effects of market volatilities on Pintec Technology and Broad Capital 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 Broad Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Broad Capital.
Diversification Opportunities for Pintec Technology and Broad Capital
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Broad is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Broad Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broad Capital 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 Broad Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broad Capital Acquisition has no effect on the direction of Pintec Technology i.e., Pintec Technology and Broad Capital go up and down completely randomly.
Pair Corralation between Pintec Technology and Broad Capital
Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 31.49 times less return on investment than Broad Capital. But when comparing it to its historical volatility, Pintec Technology Holdings is 21.12 times less risky than Broad Capital. It trades about 0.05 of its potential returns per unit of risk. Broad Capital Acquisition is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,015 in Broad Capital Acquisition on September 14, 2024 and sell it today you would earn a total of 157.00 from holding Broad Capital Acquisition or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.49% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Broad Capital Acquisition
Performance |
| Timeline |
| Pintec Technology |
| Broad Capital Acquisition |
Pintec Technology and Broad Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Broad Capital
The main advantage of trading using opposite Pintec Technology and Broad Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Broad Capital 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 Broad Capital will offset losses from the drop in Broad Capital's long position.| Pintec Technology vs. Visa Class A | Pintec Technology vs. PayPal Holdings | Pintec Technology vs. Upstart Holdings | Pintec Technology vs. Mastercard |
| Broad Capital vs. Manaris Corp | Broad Capital vs. Alpha One | Broad Capital vs. AlphaTime Acquisition 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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