Correlation Between Pintec Technology and NioCorp Developments
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and NioCorp Developments 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 NioCorp Developments 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 NioCorp Developments Ltd, you can compare the effects of market volatilities on Pintec Technology and NioCorp Developments 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 NioCorp Developments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and NioCorp Developments.
Diversification Opportunities for Pintec Technology and NioCorp Developments
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pintec and NioCorp is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and NioCorp Developments Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NioCorp Developments 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 NioCorp Developments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NioCorp Developments has no effect on the direction of Pintec Technology i.e., Pintec Technology and NioCorp Developments go up and down completely randomly.
Pair Corralation between Pintec Technology and NioCorp Developments
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 0.82 times more return on investment than NioCorp Developments. However, Pintec Technology Holdings is 1.22 times less risky than NioCorp Developments. It trades about 0.01 of its potential returns per unit of risk. NioCorp Developments Ltd is currently generating about -0.4 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. NioCorp Developments Ltd
Performance |
| Timeline |
| Pintec Technology |
| NioCorp Developments |
Pintec Technology and NioCorp Developments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and NioCorp Developments
The main advantage of trading using opposite Pintec Technology and NioCorp Developments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, NioCorp Developments 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 NioCorp Developments will offset losses from the drop in NioCorp Developments' long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| NioCorp Developments vs. Vale SA ADR | NioCorp Developments vs. Teck Resources Ltd | NioCorp Developments vs. BHP Group Limited | NioCorp Developments vs. Glencore PLC ADR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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