Correlation Between Pintec Technology and Enlight Renewable
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Enlight Renewable 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 Enlight Renewable 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 Enlight Renewable Energy, you can compare the effects of market volatilities on Pintec Technology and Enlight Renewable 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 Enlight Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Enlight Renewable.
Diversification Opportunities for Pintec Technology and Enlight Renewable
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pintec and Enlight is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Enlight Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlight Renewable Energy 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 Enlight Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlight Renewable Energy has no effect on the direction of Pintec Technology i.e., Pintec Technology and Enlight Renewable go up and down completely randomly.
Pair Corralation between Pintec Technology and Enlight Renewable
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 1.32 times more return on investment than Enlight Renewable. However, Pintec Technology is 1.32 times more volatile than Enlight Renewable Energy. It trades about 0.08 of its potential returns per unit of risk. Enlight Renewable Energy is currently generating about 0.09 per unit of risk. If you would invest 95.00 in Pintec Technology Holdings on October 11, 2024 and sell it today you would earn a total of 4.00 from holding Pintec Technology Holdings or generate 4.21% 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. Enlight Renewable Energy
Performance |
| Timeline |
| Pintec Technology |
| Enlight Renewable Energy |
Pintec Technology and Enlight Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Enlight Renewable
The main advantage of trading using opposite Pintec Technology and Enlight Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Enlight Renewable 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 Enlight Renewable will offset losses from the drop in Enlight Renewable's long position.| Pintec Technology vs. Visa Class A | Pintec Technology vs. PayPal Holdings | Pintec Technology vs. Capital One Financial | Pintec Technology vs. Mastercard |
| Enlight Renewable vs. East Africa Metals | Enlight Renewable vs. Aluminum of | Enlight Renewable vs. CVR Partners LP | Enlight Renewable vs. Western Copper and |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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