Correlation Between Pintec Technology and Melar Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Melar Acquisition 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 Melar Acquisition 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 Melar Acquisition Corp, you can compare the effects of market volatilities on Pintec Technology and Melar Acquisition 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 Melar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Melar Acquisition.
Diversification Opportunities for Pintec Technology and Melar Acquisition
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Melar is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Melar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melar Acquisition 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 Melar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melar Acquisition Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and Melar Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and Melar Acquisition
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Melar Acquisition. In addition to that, Pintec Technology is 22.45 times more volatile than Melar Acquisition Corp. It trades about 0.0 of its total potential returns per unit of risk. Melar Acquisition Corp is currently generating about 0.0 per unit of volatility. If you would invest 1,004 in Melar Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Melar Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Melar Acquisition Corp
Performance |
| Timeline |
| Pintec Technology |
| Melar Acquisition Corp |
Pintec Technology and Melar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Melar Acquisition
The main advantage of trading using opposite Pintec Technology and Melar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Melar Acquisition 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 Melar Acquisition will offset losses from the drop in Melar Acquisition's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
| Melar Acquisition vs. Allient | Melar Acquisition vs. Zoom Video Communications | Melar Acquisition vs. Arrow Electronics | Melar Acquisition vs. Radcom |
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 Stocks Directory module to find actively traded stocks across global markets.
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