Correlation Between Pintec Technology and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and NYSE Composite 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 NYSE Composite 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 NYSE Composite, you can compare the effects of market volatilities on Pintec Technology and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and NYSE Composite.
Diversification Opportunities for Pintec Technology and NYSE Composite
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and NYSE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Pintec Technology i.e., Pintec Technology and NYSE Composite go up and down completely randomly.
Pair Corralation between Pintec Technology and NYSE Composite
Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 1.34 times less return on investment than NYSE Composite. In addition to that, Pintec Technology is 6.41 times more volatile than NYSE Composite. It trades about 0.02 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.13 per unit of volatility. If you would invest 1,910,040 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 102,305 from holding NYSE Composite or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Pintec Technology Holdings vs. NYSE Composite
Performance |
| Timeline |
Pintec Technology and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Pintec Technology Holdings
Pair trading matchups for Pintec Technology
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Pintec Technology and NYSE Composite
The main advantage of trading using opposite Pintec Technology and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |