Correlation Between Pintec Technology and Golub Capital
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Golub Capital 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 Golub Capital 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 Golub Capital BDC, you can compare the effects of market volatilities on Pintec Technology and Golub Capital 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 Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Golub Capital.
Diversification Opportunities for Pintec Technology and Golub Capital
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Golub is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Golub Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golub Capital BDC 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 Golub Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golub Capital BDC has no effect on the direction of Pintec Technology i.e., Pintec Technology and Golub Capital go up and down completely randomly.
Pair Corralation between Pintec Technology and Golub Capital
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 4.61 times more return on investment than Golub Capital. However, Pintec Technology is 4.61 times more volatile than Golub Capital BDC. It trades about 0.06 of its potential returns per unit of risk. Golub Capital BDC 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Golub Capital BDC
Performance |
| Timeline |
| Pintec Technology |
| Golub Capital BDC |
Pintec Technology and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Golub Capital
The main advantage of trading using opposite Pintec Technology and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Golub Capital 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 Golub Capital will offset losses from the drop in Golub Capital's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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