Correlation Between Pintec Technology and Consilium Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Consilium 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 Consilium 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 Consilium Acquisition I, you can compare the effects of market volatilities on Pintec Technology and Consilium 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 Consilium Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Consilium Acquisition.
Diversification Opportunities for Pintec Technology and Consilium Acquisition
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pintec and Consilium is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Consilium Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consilium 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 Consilium Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consilium Acquisition has no effect on the direction of Pintec Technology i.e., Pintec Technology and Consilium Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and Consilium Acquisition
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Consilium Acquisition. In addition to that, Pintec Technology is 1.83 times more volatile than Consilium Acquisition I. It trades about 0.0 of its total potential returns per unit of risk. Consilium Acquisition I is currently generating about 0.04 per unit of volatility. If you would invest 1,072 in Consilium Acquisition I on September 3, 2024 and sell it today you would earn a total of 97.00 from holding Consilium Acquisition I or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Consilium Acquisition I
Performance |
| Timeline |
| Pintec Technology |
| Consilium Acquisition |
Pintec Technology and Consilium Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Consilium Acquisition
The main advantage of trading using opposite Pintec Technology and Consilium Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Consilium 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 Consilium Acquisition will offset losses from the drop in Consilium Acquisition's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Consilium Acquisition vs. Marblegate Acquisition Corp | Consilium Acquisition vs. Alpha One | Consilium Acquisition vs. Manaris Corp | Consilium Acquisition vs. SCOR PK |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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