Correlation Between Pintec Technology and Golden Star
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Golden Star 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 Golden Star 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 Golden Star Acquisition, you can compare the effects of market volatilities on Pintec Technology and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Golden Star.
Diversification Opportunities for Pintec Technology and Golden Star
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Golden is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Pintec Technology i.e., Pintec Technology and Golden Star go up and down completely randomly.
Pair Corralation between Pintec Technology and Golden Star
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 31.99 times more return on investment than Golden Star. However, Pintec Technology is 31.99 times more volatile than Golden Star Acquisition. It trades about 0.01 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about 0.22 per unit of risk. If you would invest 93.00 in Pintec Technology Holdings on September 13, 2024 and sell it today you would lose (1.00) from holding Pintec Technology Holdings or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Golden Star Acquisition
Performance |
| Timeline |
| Pintec Technology |
| Golden Star Acquisition |
Pintec Technology and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Golden Star
The main advantage of trading using opposite Pintec Technology and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Pintec Technology vs. Visa Class A | Pintec Technology vs. PayPal Holdings | Pintec Technology vs. Upstart Holdings | Pintec Technology vs. Mastercard |
| Golden Star vs. Visa Class A | Golden Star vs. Diamond Hill Investment | Golden Star vs. Distoken Acquisition | Golden Star vs. AllianceBernstein Holding LP |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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