Correlation Between Pintec Technology and Bt Brands
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Bt Brands 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 Bt Brands 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 Bt Brands, you can compare the effects of market volatilities on Pintec Technology and Bt Brands 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 Bt Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Bt Brands.
Diversification Opportunities for Pintec Technology and Bt Brands
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pintec and BTBD is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Bt Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bt Brands 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 Bt Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bt Brands has no effect on the direction of Pintec Technology i.e., Pintec Technology and Bt Brands go up and down completely randomly.
Pair Corralation between Pintec Technology and Bt Brands
Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 5.98 times less return on investment than Bt Brands. But when comparing it to its historical volatility, Pintec Technology Holdings is 2.49 times less risky than Bt Brands. It trades about 0.1 of its potential returns per unit of risk. Bt Brands is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Bt Brands on November 2, 2024 and sell it today you would earn a total of 40.00 from holding Bt Brands or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Bt Brands
Performance |
| Timeline |
| Pintec Technology |
| Bt Brands |
Pintec Technology and Bt Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Bt Brands
The main advantage of trading using opposite Pintec Technology and Bt Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Bt Brands 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 Bt Brands will offset losses from the drop in Bt Brands' long position.| Pintec Technology vs. Visa Class A | Pintec Technology vs. PayPal Holdings | Pintec Technology vs. Mastercard |
| Bt Brands vs. Papa Johns International | Bt Brands vs. Darden Restaurants | Bt Brands vs. Yum China Holdings |
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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