Correlation Between Pintec Technology and PowerUp Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and PowerUp Acquisition 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 PowerUp Acquisition 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 PowerUp Acquisition Corp, you can compare the effects of market volatilities on Pintec Technology and PowerUp Acquisition 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 PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and PowerUp Acquisition.
Diversification Opportunities for Pintec Technology and PowerUp Acquisition
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and PowerUp is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp Acquisition 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 PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and PowerUp Acquisition
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.33 times more return on investment than PowerUp Acquisition. However, Pintec Technology is 2.33 times more volatile than PowerUp Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about 0.02 per unit of risk. If you would invest 53.00 in Pintec Technology Holdings on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Pintec Technology Holdings or generate 81.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pintec Technology Holdings vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| Pintec Technology |
| PowerUp Acquisition Corp |
Pintec Technology and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and PowerUp Acquisition
The main advantage of trading using opposite Pintec Technology and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, PowerUp Acquisition 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 PowerUp Acquisition will offset losses from the drop in PowerUp Acquisition's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai |
| PowerUp Acquisition vs. ClimateRock Class A | PowerUp Acquisition vs. CF Acquisition VII | PowerUp Acquisition vs. DP Cap Acquisition |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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