Correlation Between Pintec Technology and Hut 8
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Hut 8 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 Hut 8 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 Hut 8 Corp, you can compare the effects of market volatilities on Pintec Technology and Hut 8 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 Hut 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Hut 8.
Diversification Opportunities for Pintec Technology and Hut 8
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Hut is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Hut 8 Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hut 8 Corp 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 Hut 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hut 8 Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and Hut 8 go up and down completely randomly.
Pair Corralation between Pintec Technology and Hut 8
Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 2.13 times less return on investment than Hut 8. But when comparing it to its historical volatility, Pintec Technology Holdings is 1.53 times less risky than Hut 8. It trades about 0.06 of its potential returns per unit of risk. Hut 8 Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 555.00 in Hut 8 Corp on August 27, 2024 and sell it today you would earn a total of 2,037 from holding Hut 8 Corp or generate 367.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Hut 8 Corp
Performance |
| Timeline |
| Pintec Technology |
| Hut 8 Corp |
Pintec Technology and Hut 8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Hut 8
The main advantage of trading using opposite Pintec Technology and Hut 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Hut 8 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 Hut 8 will offset losses from the drop in Hut 8's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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