Correlation Between Pintec Technology and Greenlight Capital
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Greenlight 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 Greenlight 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 Greenlight Capital Re, you can compare the effects of market volatilities on Pintec Technology and Greenlight 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 Greenlight Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Greenlight Capital.
Diversification Opportunities for Pintec Technology and Greenlight Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Greenlight is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Greenlight Capital Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlight Capital 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 Greenlight Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlight Capital has no effect on the direction of Pintec Technology i.e., Pintec Technology and Greenlight Capital go up and down completely randomly.
Pair Corralation between Pintec Technology and Greenlight Capital
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Greenlight Capital. In addition to that, Pintec Technology is 1.77 times more volatile than Greenlight Capital Re. It trades about -0.02 of its total potential returns per unit of risk. Greenlight Capital Re is currently generating about 0.06 per unit of volatility. If you would invest 1,324 in Greenlight Capital Re on August 24, 2024 and sell it today you would earn a total of 176.00 from holding Greenlight Capital Re or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Greenlight Capital Re
Performance |
| Timeline |
| Pintec Technology |
| Greenlight Capital |
Pintec Technology and Greenlight Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Greenlight Capital
The main advantage of trading using opposite Pintec Technology and Greenlight Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Greenlight 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 Greenlight Capital will offset losses from the drop in Greenlight Capital's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Greenlight Capital vs. Reinsurance Group of | Greenlight Capital vs. Siriuspoint | Greenlight Capital vs. SCOR PK | Greenlight Capital vs. SiriusPoint |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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