Correlation Between Pintec Technology and Saia
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Saia 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 Saia 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 Saia Inc, you can compare the effects of market volatilities on Pintec Technology and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Saia.
Diversification Opportunities for Pintec Technology and Saia
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Saia is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Pintec Technology i.e., Pintec Technology and Saia go up and down completely randomly.
Pair Corralation between Pintec Technology and Saia
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Saia. In addition to that, Pintec Technology is 1.45 times more volatile than Saia Inc. It trades about -0.01 of its total potential returns per unit of risk. Saia Inc is currently generating about 0.12 per unit of volatility. If you would invest 42,018 in Saia Inc on September 12, 2024 and sell it today you would earn a total of 10,129 from holding Saia Inc or generate 24.11% 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. Saia Inc
Performance |
| Timeline |
| Pintec Technology |
| Saia Inc |
Pintec Technology and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Saia
The main advantage of trading using opposite Pintec Technology and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia's long position.| Pintec Technology vs. Visa Class A | Pintec Technology vs. PayPal Holdings | Pintec Technology vs. Upstart Holdings | Pintec Technology vs. Mastercard |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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