Correlation Between Pintec Technology and Manhattan Bridge
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Manhattan Bridge 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 Manhattan Bridge 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 Manhattan Bridge Capital, you can compare the effects of market volatilities on Pintec Technology and Manhattan Bridge 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 Manhattan Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Manhattan Bridge.
Diversification Opportunities for Pintec Technology and Manhattan Bridge
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Manhattan is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Manhattan Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Bridge 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 Manhattan Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Bridge Capital has no effect on the direction of Pintec Technology i.e., Pintec Technology and Manhattan Bridge go up and down completely randomly.
Pair Corralation between Pintec Technology and Manhattan Bridge
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 3.46 times more return on investment than Manhattan Bridge. However, Pintec Technology is 3.46 times more volatile than Manhattan Bridge Capital. It trades about 0.01 of its potential returns per unit of risk. Manhattan Bridge Capital is currently generating about -0.25 per unit of risk. If you would invest 100.00 in Pintec Technology Holdings on August 27, 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. Manhattan Bridge Capital
Performance |
| Timeline |
| Pintec Technology |
| Manhattan Bridge Capital |
Pintec Technology and Manhattan Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Manhattan Bridge
The main advantage of trading using opposite Pintec Technology and Manhattan Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Manhattan Bridge 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 Manhattan Bridge will offset losses from the drop in Manhattan Bridge's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| Manhattan Bridge vs. Franklin BSP Realty | Manhattan Bridge vs. AGNC Investment Corp | Manhattan Bridge vs. Nexpoint Real Estate | Manhattan Bridge vs. Great Ajax 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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