Correlation Between Pintec Technology and Lithium Americas
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Lithium Americas 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 Lithium Americas 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 Lithium Americas Corp, you can compare the effects of market volatilities on Pintec Technology and Lithium Americas 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 Lithium Americas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Lithium Americas.
Diversification Opportunities for Pintec Technology and Lithium Americas
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Lithium is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Lithium Americas Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Americas 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 Lithium Americas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Americas Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and Lithium Americas go up and down completely randomly.
Pair Corralation between Pintec Technology and Lithium Americas
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 0.85 times more return on investment than Lithium Americas. However, Pintec Technology Holdings is 1.18 times less risky than Lithium Americas. It trades about 0.01 of its potential returns per unit of risk. Lithium Americas Corp is currently generating about -0.06 per unit of risk. If you would invest 95.00 in Pintec Technology Holdings on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Pintec Technology Holdings or generate 0.0% 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. Lithium Americas Corp
Performance |
| Timeline |
| Pintec Technology |
| Lithium Americas Corp |
Pintec Technology and Lithium Americas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Lithium Americas
The main advantage of trading using opposite Pintec Technology and Lithium Americas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Lithium Americas 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 Lithium Americas will offset losses from the drop in Lithium Americas' long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Lithium Americas vs. Arrow Electronics | Lithium Americas vs. Minerals Technologies | Lithium Americas vs. Pintec Technology Holdings | Lithium Americas vs. Juniata Valley Financial |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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