Correlation Between Pintec Technology and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Graham Holdings 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 Graham Holdings 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 Graham Holdings Co, you can compare the effects of market volatilities on Pintec Technology and Graham Holdings 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 Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Graham Holdings.
Diversification Opportunities for Pintec Technology and Graham Holdings
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Graham is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of Pintec Technology i.e., Pintec Technology and Graham Holdings go up and down completely randomly.
Pair Corralation between Pintec Technology and Graham Holdings
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.46 times more return on investment than Graham Holdings. However, Pintec Technology is 2.46 times more volatile than Graham Holdings Co. It trades about 0.06 of its potential returns per unit of risk. Graham Holdings Co is currently generating about 0.05 per unit of risk. If you would invest 42.00 in Pintec Technology Holdings on October 23, 2024 and sell it today you would earn a total of 57.10 from holding Pintec Technology Holdings or generate 135.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Graham Holdings Co
Performance |
| Timeline |
| Pintec Technology |
| Graham Holdings |
Pintec Technology and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Graham Holdings
The main advantage of trading using opposite Pintec Technology and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |