Correlation Between Pintec Technology and Exchange Bankshares
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Exchange Bankshares 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 Exchange Bankshares 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 Exchange Bankshares, you can compare the effects of market volatilities on Pintec Technology and Exchange Bankshares 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 Exchange Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Exchange Bankshares.
Diversification Opportunities for Pintec Technology and Exchange Bankshares
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pintec and Exchange is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Exchange Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Bankshares 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 Exchange Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Bankshares has no effect on the direction of Pintec Technology i.e., Pintec Technology and Exchange Bankshares go up and down completely randomly.
Pair Corralation between Pintec Technology and Exchange Bankshares
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 35.49 times more return on investment than Exchange Bankshares. However, Pintec Technology is 35.49 times more volatile than Exchange Bankshares. It trades about 0.14 of its potential returns per unit of risk. Exchange Bankshares is currently generating about 0.24 per unit of risk. If you would invest 92.00 in Pintec Technology Holdings on October 23, 2024 and sell it today you would earn a total of 6.00 from holding Pintec Technology Holdings or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Exchange Bankshares
Performance |
| Timeline |
| Pintec Technology |
| Exchange Bankshares |
Pintec Technology and Exchange Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Exchange Bankshares
The main advantage of trading using opposite Pintec Technology and Exchange Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Exchange Bankshares 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 Exchange Bankshares will offset losses from the drop in Exchange Bankshares' long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Exchange Bankshares vs. First Community Financial | Exchange Bankshares vs. National Capital Bank | Exchange Bankshares vs. Oakworth Capital | Exchange Bankshares vs. Truxton |
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.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |