Correlation Between Pintec Technology and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Playtika Holding 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 Playtika Holding 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 Playtika Holding Corp, you can compare the effects of market volatilities on Pintec Technology and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Playtika Holding.
Diversification Opportunities for Pintec Technology and Playtika Holding
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Playtika is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and Playtika Holding go up and down completely randomly.
Pair Corralation between Pintec Technology and Playtika Holding
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Playtika Holding. In addition to that, Pintec Technology is 2.75 times more volatile than Playtika Holding Corp. It trades about 0.0 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.15 per unit of volatility. If you would invest 734.00 in Playtika Holding Corp on September 3, 2024 and sell it today you would earn a total of 108.00 from holding Playtika Holding Corp or generate 14.71% 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. Playtika Holding Corp
Performance |
| Timeline |
| Pintec Technology |
| Playtika Holding Corp |
Pintec Technology and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Playtika Holding
The main advantage of trading using opposite Pintec Technology and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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