Correlation Between Pintec Technology and Mr Cooper
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Mr Cooper 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 Mr Cooper 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 Mr Cooper Group, you can compare the effects of market volatilities on Pintec Technology and Mr Cooper 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 Mr Cooper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Mr Cooper.
Diversification Opportunities for Pintec Technology and Mr Cooper
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pintec and COOP is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Mr Cooper Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mr Cooper Group 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 Mr Cooper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mr Cooper Group has no effect on the direction of Pintec Technology i.e., Pintec Technology and Mr Cooper go up and down completely randomly.
Pair Corralation between Pintec Technology and Mr Cooper
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Mr Cooper. In addition to that, Pintec Technology is 1.33 times more volatile than Mr Cooper Group. It trades about -0.01 of its total potential returns per unit of risk. Mr Cooper Group is currently generating about 0.07 per unit of volatility. If you would invest 8,646 in Mr Cooper Group on January 11, 2025 and sell it today you would earn a total of 2,354 from holding Mr Cooper Group or generate 27.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Mr Cooper Group
Performance |
| Timeline |
| Pintec Technology |
| Mr Cooper Group |
Pintec Technology and Mr Cooper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Mr Cooper
The main advantage of trading using opposite Pintec Technology and Mr Cooper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Mr Cooper 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 Mr Cooper will offset losses from the drop in Mr Cooper's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Qudian Inc | Pintec Technology vs. X Financial Class | Pintec Technology vs. Atlanticus Holdings Corp |
| Mr Cooper vs. Guild Holdings Co | Mr Cooper vs. Encore Capital Group | Mr Cooper vs. CNFinance Holdings | Mr Cooper vs. Velocity Financial Llc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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