Correlation Between Pintec Technology and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Aberdeen Global 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 Aberdeen Global 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 Aberdeen Global IF, you can compare the effects of market volatilities on Pintec Technology and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Aberdeen Global.
Diversification Opportunities for Pintec Technology and Aberdeen Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Aberdeen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Aberdeen Global IF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global IF 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 Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global IF has no effect on the direction of Pintec Technology i.e., Pintec Technology and Aberdeen Global go up and down completely randomly.
Pair Corralation between Pintec Technology and Aberdeen Global
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.65 times more return on investment than Aberdeen Global. However, Pintec Technology is 2.65 times more volatile than Aberdeen Global IF. It trades about 0.06 of its potential returns per unit of risk. Aberdeen Global IF is currently generating about 0.08 per unit of risk. If you would invest 46.00 in Pintec Technology Holdings on August 27, 2024 and sell it today you would earn a total of 54.00 from holding Pintec Technology Holdings or generate 117.39% 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. Aberdeen Global IF
Performance |
| Timeline |
| Pintec Technology |
| Aberdeen Global IF |
Pintec Technology and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Aberdeen Global
The main advantage of trading using opposite Pintec Technology and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| Aberdeen Global vs. Aberdeen Australia Ef | Aberdeen Global vs. Western Asset Emerging | Aberdeen Global vs. Cbre Clarion Global | Aberdeen Global vs. Credit Suisse High |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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