Correlation Between Pintec Technology and Gannett
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Gannett 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 Gannett 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 Gannett Co, you can compare the effects of market volatilities on Pintec Technology and Gannett 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 Gannett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Gannett.
Diversification Opportunities for Pintec Technology and Gannett
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pintec and Gannett is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Gannett Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gannett 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 Gannett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gannett has no effect on the direction of Pintec Technology i.e., Pintec Technology and Gannett go up and down completely randomly.
Pair Corralation between Pintec Technology and Gannett
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Gannett. But the stock apears to be less risky and, when comparing its historical volatility, Pintec Technology Holdings is 1.18 times less risky than Gannett. The stock trades about -0.13 of its potential returns per unit of risk. The Gannett Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 544.00 in Gannett Co on October 9, 2024 and sell it today you would lose (29.00) from holding Gannett Co or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Gannett Co
Performance |
| Timeline |
| Pintec Technology |
| Gannett |
Pintec Technology and Gannett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Gannett
The main advantage of trading using opposite Pintec Technology and Gannett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Gannett 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 Gannett will offset losses from the drop in Gannett's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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