Correlation Between Pintec Technology and Independence Realty
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Independence Realty 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 Independence Realty 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 Independence Realty Trust, you can compare the effects of market volatilities on Pintec Technology and Independence Realty 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 Independence Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Independence Realty.
Diversification Opportunities for Pintec Technology and Independence Realty
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pintec and Independence is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Independence Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Realty Trust 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 Independence Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Realty Trust has no effect on the direction of Pintec Technology i.e., Pintec Technology and Independence Realty go up and down completely randomly.
Pair Corralation between Pintec Technology and Independence Realty
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Independence Realty. In addition to that, Pintec Technology is 2.24 times more volatile than Independence Realty Trust. It trades about 0.0 of its total potential returns per unit of risk. Independence Realty Trust is currently generating about 0.38 per unit of volatility. If you would invest 1,962 in Independence Realty Trust on September 1, 2024 and sell it today you would earn a total of 222.00 from holding Independence Realty Trust or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Independence Realty Trust
Performance |
| Timeline |
| Pintec Technology |
| Independence Realty Trust |
Pintec Technology and Independence Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Independence Realty
The main advantage of trading using opposite Pintec Technology and Independence Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Independence Realty 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 Independence Realty will offset losses from the drop in Independence Realty's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
| Independence Realty vs. Apartment Investment and | Independence Realty vs. Clipper Realty | Independence Realty vs. BRT Realty Trust | Independence Realty vs. UDR Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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