Correlation Between Pintec Technology and EVe Mobility
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and EVe Mobility 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 EVe Mobility 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 EVe Mobility Acquisition, you can compare the effects of market volatilities on Pintec Technology and EVe Mobility 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 EVe Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and EVe Mobility.
Diversification Opportunities for Pintec Technology and EVe Mobility
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and EVe is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and EVe Mobility Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVe Mobility 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 EVe Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVe Mobility Acquisition has no effect on the direction of Pintec Technology i.e., Pintec Technology and EVe Mobility go up and down completely randomly.
Pair Corralation between Pintec Technology and EVe Mobility
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the EVe Mobility. In addition to that, Pintec Technology is 13.61 times more volatile than EVe Mobility Acquisition. It trades about -0.03 of its total potential returns per unit of risk. EVe Mobility Acquisition is currently generating about 0.14 per unit of volatility. If you would invest 1,120 in EVe Mobility Acquisition on August 30, 2024 and sell it today you would earn a total of 8.00 from holding EVe Mobility Acquisition or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. EVe Mobility Acquisition
Performance |
| Timeline |
| Pintec Technology |
| EVe Mobility Acquisition |
Pintec Technology and EVe Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and EVe Mobility
The main advantage of trading using opposite Pintec Technology and EVe Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, EVe Mobility 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 EVe Mobility will offset losses from the drop in EVe Mobility's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. X Financial Class | Pintec Technology vs. LendingClub Corp |
| EVe Mobility vs. Pyrophyte Acquisition Corp | EVe Mobility vs. Cartesian Growth | EVe Mobility vs. Oak Woods 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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