Correlation Between Pintec Technology and Patria Latin
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Patria Latin 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 Patria Latin 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 Patria Latin American, you can compare the effects of market volatilities on Pintec Technology and Patria Latin 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 Patria Latin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Patria Latin.
Diversification Opportunities for Pintec Technology and Patria Latin
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Patria is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Patria Latin American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Latin American 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 Patria Latin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Latin American has no effect on the direction of Pintec Technology i.e., Pintec Technology and Patria Latin go up and down completely randomly.
Pair Corralation between Pintec Technology and Patria Latin
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Patria Latin. In addition to that, Pintec Technology is 9.98 times more volatile than Patria Latin American. It trades about -0.03 of its total potential returns per unit of risk. Patria Latin American is currently generating about 0.05 per unit of volatility. If you would invest 1,141 in Patria Latin American on August 29, 2024 and sell it today you would earn a total of 22.00 from holding Patria Latin American or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Patria Latin American
Performance |
| Timeline |
| Pintec Technology |
| Patria Latin American |
Pintec Technology and Patria Latin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Patria Latin
The main advantage of trading using opposite Pintec Technology and Patria Latin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Patria Latin 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 Patria Latin will offset losses from the drop in Patria Latin's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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