Correlation Between Pintec Technology and Metals Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Metals 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 Metals 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 Metals Acquisition Limited, you can compare the effects of market volatilities on Pintec Technology and Metals 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 Metals Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Metals Acquisition.
Diversification Opportunities for Pintec Technology and Metals Acquisition
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Metals is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Metals Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metals Acquisition 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 Metals Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metals Acquisition has no effect on the direction of Pintec Technology i.e., Pintec Technology and Metals Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and Metals Acquisition
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 1.1 times more return on investment than Metals Acquisition. However, Pintec Technology is 1.1 times more volatile than Metals Acquisition Limited. It trades about -0.02 of its potential returns per unit of risk. Metals Acquisition Limited is currently generating about -0.02 per unit of risk. If you would invest 110.00 in Pintec Technology Holdings on September 1, 2024 and sell it today you would lose (14.00) from holding Pintec Technology Holdings or give up 12.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Metals Acquisition Limited
Performance |
| Timeline |
| Pintec Technology |
| Metals Acquisition |
Pintec Technology and Metals Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Metals Acquisition
The main advantage of trading using opposite Pintec Technology and Metals Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Metals 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 Metals Acquisition will offset losses from the drop in Metals Acquisition's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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