Correlation Between Pintec Technology and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Deutsche Bank 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 Deutsche Bank 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 Deutsche Bank AG, you can compare the effects of market volatilities on Pintec Technology and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Deutsche Bank.
Diversification Opportunities for Pintec Technology and Deutsche Bank
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Deutsche is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Deutsche Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank AG 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank AG has no effect on the direction of Pintec Technology i.e., Pintec Technology and Deutsche Bank go up and down completely randomly.
Pair Corralation between Pintec Technology and Deutsche Bank
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.15 times more return on investment than Deutsche Bank. However, Pintec Technology is 2.15 times more volatile than Deutsche Bank AG. It trades about 0.04 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.06 per unit of risk. If you would invest 61.00 in Pintec Technology Holdings on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Pintec Technology Holdings or generate 57.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Deutsche Bank AG
Performance |
| Timeline |
| Pintec Technology |
| Deutsche Bank AG |
Pintec Technology and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Deutsche Bank
The main advantage of trading using opposite Pintec Technology and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Deutsche Bank vs. Banco Bradesco SA | Deutsche Bank vs. Itau Unibanco Banco | Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Banco Santander Brasil |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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