Correlation Between Pintec Technology and Getty Images
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Getty Images 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 Getty Images 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 Getty Images Holdings, you can compare the effects of market volatilities on Pintec Technology and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Getty Images.
Diversification Opportunities for Pintec Technology and Getty Images
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pintec and Getty is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Pintec Technology i.e., Pintec Technology and Getty Images go up and down completely randomly.
Pair Corralation between Pintec Technology and Getty Images
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 0.57 times more return on investment than Getty Images. However, Pintec Technology Holdings is 1.76 times less risky than Getty Images. It trades about 0.0 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.28 per unit of risk. If you would invest 97.00 in Pintec Technology Holdings on September 1, 2024 and sell it today you would lose (1.00) from holding Pintec Technology Holdings or give up 1.03% 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. Getty Images Holdings
Performance |
| Timeline |
| Pintec Technology |
| Getty Images Holdings |
Pintec Technology and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Getty Images
The main advantage of trading using opposite Pintec Technology and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
| Getty Images vs. MediaAlpha | Getty Images vs. Asset Entities Class | Getty Images vs. Shutterstock | Getty Images vs. Match Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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