Correlation Between Pintec Technology and Capital One
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Capital One 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 Capital One 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 Capital One Financial, you can compare the effects of market volatilities on Pintec Technology and Capital One 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 Capital One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Capital One.
Diversification Opportunities for Pintec Technology and Capital One
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Capital is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Capital One Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital One Financial 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 Capital One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital One Financial has no effect on the direction of Pintec Technology i.e., Pintec Technology and Capital One go up and down completely randomly.
Pair Corralation between Pintec Technology and Capital One
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.23 times more return on investment than Capital One. However, Pintec Technology is 2.23 times more volatile than Capital One Financial. It trades about 0.06 of its potential returns per unit of risk. Capital One Financial is currently generating about 0.08 per unit of risk. If you would invest 43.00 in Pintec Technology Holdings on August 26, 2024 and sell it today you would earn a total of 57.00 from holding Pintec Technology Holdings or generate 132.56% 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. Capital One Financial
Performance |
| Timeline |
| Pintec Technology |
| Capital One Financial |
Pintec Technology and Capital One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Capital One
The main advantage of trading using opposite Pintec Technology and Capital One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Capital One 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 Capital One will offset losses from the drop in Capital One's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| Capital One vs. Mastercard | Capital One vs. Visa Class A | Capital One vs. PayPal Holdings | Capital One vs. Ally Financial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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