Correlation Between Pintec Technology and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and BurTech 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 BurTech 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 BurTech Acquisition Corp, you can compare the effects of market volatilities on Pintec Technology and BurTech 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 BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and BurTech Acquisition.
Diversification Opportunities for Pintec Technology and BurTech Acquisition
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and BurTech is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition Corp 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 BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and BurTech Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and BurTech Acquisition
Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 3.09 times less return on investment than BurTech Acquisition. In addition to that, Pintec Technology is 9.61 times more volatile than BurTech Acquisition Corp. It trades about 0.0 of its total potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.09 per unit of volatility. If you would invest 1,047 in BurTech Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 94.00 from holding BurTech Acquisition Corp or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. BurTech Acquisition Corp
Performance |
| Timeline |
| Pintec Technology |
| BurTech Acquisition Corp |
Pintec Technology and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and BurTech Acquisition
The main advantage of trading using opposite Pintec Technology and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, BurTech 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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