Correlation Between Pintec Technology and National Beverage
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and National Beverage 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 National Beverage 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 National Beverage Corp, you can compare the effects of market volatilities on Pintec Technology and National Beverage 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 National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and National Beverage.
Diversification Opportunities for Pintec Technology and National Beverage
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and National is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and National Beverage go up and down completely randomly.
Pair Corralation between Pintec Technology and National Beverage
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.42 times more return on investment than National Beverage. However, Pintec Technology is 2.42 times more volatile than National Beverage Corp. It trades about 0.04 of its potential returns per unit of risk. National Beverage Corp is currently generating about 0.02 per unit of risk. If you would invest 61.00 in Pintec Technology Holdings on August 29, 2024 and sell it today you would earn a total of 37.00 from holding Pintec Technology Holdings or generate 60.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. National Beverage Corp
Performance |
| Timeline |
| Pintec Technology |
| National Beverage Corp |
Pintec Technology and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and National Beverage
The main advantage of trading using opposite Pintec Technology and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, National Beverage 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 National Beverage will offset losses from the drop in National Beverage's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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