Correlation Between Pintec Technology and B Riley
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and B Riley 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 B Riley 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 B Riley Financial, you can compare the effects of market volatilities on Pintec Technology and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and B Riley.
Diversification Opportunities for Pintec Technology and B Riley
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and RILYK is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Pintec Technology i.e., Pintec Technology and B Riley go up and down completely randomly.
Pair Corralation between Pintec Technology and B Riley
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the B Riley. In addition to that, Pintec Technology is 1.92 times more volatile than B Riley Financial. It trades about 0.0 of its total potential returns per unit of risk. B Riley Financial is currently generating about 0.3 per unit of volatility. If you would invest 1,860 in B Riley Financial on September 1, 2024 and sell it today you would earn a total of 191.00 from holding B Riley Financial or generate 10.27% 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. B Riley Financial
Performance |
| Timeline |
| Pintec Technology |
| B Riley Financial |
Pintec Technology and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and B Riley
The main advantage of trading using opposite Pintec Technology and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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