Correlation Between Pintec Technology and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Income, you can compare the effects of market volatilities on Pintec Technology and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Invesco Municipal.
Diversification Opportunities for Pintec Technology and Invesco Municipal
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Invesco is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Invesco Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Income 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Income has no effect on the direction of Pintec Technology i.e., Pintec Technology and Invesco Municipal go up and down completely randomly.
Pair Corralation between Pintec Technology and Invesco Municipal
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Invesco Municipal. In addition to that, Pintec Technology is 3.7 times more volatile than Invesco Municipal Income. It trades about -0.02 of its total potential returns per unit of risk. Invesco Municipal Income is currently generating about 0.15 per unit of volatility. If you would invest 645.00 in Invesco Municipal Income on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Invesco Municipal Income or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Invesco Municipal Income
Performance |
| Timeline |
| Pintec Technology |
| Invesco Municipal Income |
Pintec Technology and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Invesco Municipal
The main advantage of trading using opposite Pintec Technology and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Invesco Municipal vs. DWS Municipal Income | Invesco Municipal vs. MFS Municipal Income | Invesco Municipal vs. MFS High Income | Invesco Municipal vs. Blackrock Muniyield |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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