Correlation Between Pintec Technology and Cartesian Growth
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Cartesian Growth 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 Cartesian Growth 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 Cartesian Growth, you can compare the effects of market volatilities on Pintec Technology and Cartesian Growth 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 Cartesian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Cartesian Growth.
Diversification Opportunities for Pintec Technology and Cartesian Growth
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Cartesian is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth 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 Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of Pintec Technology i.e., Pintec Technology and Cartesian Growth go up and down completely randomly.
Pair Corralation between Pintec Technology and Cartesian Growth
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 27.85 times more return on investment than Cartesian Growth. However, Pintec Technology is 27.85 times more volatile than Cartesian Growth. It trades about 0.05 of its potential returns per unit of risk. Cartesian Growth is currently generating about 0.17 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Cartesian Growth
Performance |
| Timeline |
| Pintec Technology |
| Cartesian Growth |
Pintec Technology and Cartesian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Cartesian Growth
The main advantage of trading using opposite Pintec Technology and Cartesian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Cartesian Growth 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 Cartesian Growth will offset losses from the drop in Cartesian Growth's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Cartesian Growth vs. Pyrophyte Acquisition Corp | Cartesian Growth vs. Oak Woods Acquisition | Cartesian Growth vs. Embrace Change Acquisition | Cartesian Growth vs. Bannix Acquisition Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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