Correlation Between Pintec Technology and Piper Sandler
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Piper Sandler 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 Piper Sandler 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 Piper Sandler Companies, you can compare the effects of market volatilities on Pintec Technology and Piper Sandler 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 Piper Sandler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Piper Sandler.
Diversification Opportunities for Pintec Technology and Piper Sandler
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Piper is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Piper Sandler Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piper Sandler Companies 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 Piper Sandler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piper Sandler Companies has no effect on the direction of Pintec Technology i.e., Pintec Technology and Piper Sandler go up and down completely randomly.
Pair Corralation between Pintec Technology and Piper Sandler
Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 22.48 times less return on investment than Piper Sandler. But when comparing it to its historical volatility, Pintec Technology Holdings is 1.47 times less risky than Piper Sandler. It trades about 0.01 of its potential returns per unit of risk. Piper Sandler Companies is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 28,877 in Piper Sandler Companies on August 28, 2024 and sell it today you would earn a total of 6,004 from holding Piper Sandler Companies or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Piper Sandler Companies
Performance |
| Timeline |
| Pintec Technology |
| Piper Sandler Companies |
Pintec Technology and Piper Sandler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Piper Sandler
The main advantage of trading using opposite Pintec Technology and Piper Sandler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Piper Sandler 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 Piper Sandler will offset losses from the drop in Piper Sandler's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| Piper Sandler vs. Perella Weinberg Partners | Piper Sandler vs. Evercore Partners | Piper Sandler vs. Lazard | Piper Sandler vs. Moelis Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |