Correlation Between Pintec Technology and DUET Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and DUET 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 DUET 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 DUET Acquisition Corp, you can compare the effects of market volatilities on Pintec Technology and DUET 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 DUET Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and DUET Acquisition.
Diversification Opportunities for Pintec Technology and DUET Acquisition
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and DUET is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and DUET Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUET Acquisition Corp 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 DUET Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUET Acquisition Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and DUET Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and DUET Acquisition
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 19.21 times more return on investment than DUET Acquisition. However, Pintec Technology is 19.21 times more volatile than DUET Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. DUET Acquisition Corp is currently generating about 0.11 per unit of risk. If you would invest 53.00 in Pintec Technology Holdings on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Pintec Technology Holdings or generate 81.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pintec Technology Holdings vs. DUET Acquisition Corp
Performance |
| Timeline |
| Pintec Technology |
| DUET Acquisition Corp |
Pintec Technology and DUET Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and DUET Acquisition
The main advantage of trading using opposite Pintec Technology and DUET Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, DUET 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 DUET Acquisition will offset losses from the drop in DUET Acquisition's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai |
| DUET Acquisition vs. ClimateRock Class A | DUET Acquisition vs. CF Acquisition VII | DUET Acquisition vs. DP Cap Acquisition |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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