Correlation Between Pintec Technology and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Marblegate Acquisition 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 Marblegate Acquisition 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 Marblegate Acquisition Corp, you can compare the effects of market volatilities on Pintec Technology and Marblegate Acquisition 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 Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Marblegate Acquisition.
Diversification Opportunities for Pintec Technology and Marblegate Acquisition
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pintec and Marblegate is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate 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 Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of Pintec Technology i.e., Pintec Technology and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and Marblegate Acquisition
Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 33.7 times less return on investment than Marblegate Acquisition. But when comparing it to its historical volatility, Pintec Technology Holdings is 7.33 times less risky than Marblegate Acquisition. It trades about 0.02 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,110 in Marblegate Acquisition Corp on January 16, 2025 and sell it today you would earn a total of 2,495 from holding Marblegate Acquisition Corp or generate 224.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.37% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Pintec Technology |
| Marblegate Acquisition |
Pintec Technology and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Marblegate Acquisition
The main advantage of trading using opposite Pintec Technology and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Marblegate Acquisition 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 Marblegate Acquisition will offset losses from the drop in Marblegate Acquisition's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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