Correlation Between Pintec Technology and Marex Group
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Marex Group 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 Marex Group 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 Marex Group plc, you can compare the effects of market volatilities on Pintec Technology and Marex Group 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 Marex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Marex Group.
Diversification Opportunities for Pintec Technology and Marex Group
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Marex is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc 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 Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of Pintec Technology i.e., Pintec Technology and Marex Group go up and down completely randomly.
Pair Corralation between Pintec Technology and Marex Group
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Marex Group. In addition to that, Pintec Technology is 1.95 times more volatile than Marex Group plc. It trades about -0.02 of its total potential returns per unit of risk. Marex Group plc is currently generating about 0.3 per unit of volatility. If you would invest 2,642 in Marex Group plc on August 31, 2024 and sell it today you would earn a total of 273.00 from holding Marex Group plc or generate 10.33% 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. Marex Group plc
Performance |
| Timeline |
| Pintec Technology |
| Marex Group plc |
Pintec Technology and Marex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Marex Group
The main advantage of trading using opposite Pintec Technology and Marex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Marex Group 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 Marex Group will offset losses from the drop in Marex Group's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Marex Group vs. LB Foster | Marex Group vs. Pool Corporation | Marex Group vs. Cardinal Health | Marex Group vs. Amkor Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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