Correlation Between Pintec Technology and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and SEI Investments 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 SEI Investments 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 SEI Investments, you can compare the effects of market volatilities on Pintec Technology and SEI Investments 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 SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and SEI Investments.
Diversification Opportunities for Pintec Technology and SEI Investments
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and SEI is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments 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 SEI Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Investments has no effect on the direction of Pintec Technology i.e., Pintec Technology and SEI Investments go up and down completely randomly.
Pair Corralation between Pintec Technology and SEI Investments
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the SEI Investments. In addition to that, Pintec Technology is 1.7 times more volatile than SEI Investments. It trades about -0.07 of its total potential returns per unit of risk. SEI Investments is currently generating about 0.33 per unit of volatility. If you would invest 7,112 in SEI Investments on August 23, 2024 and sell it today you would earn a total of 904.00 from holding SEI Investments or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. SEI Investments
Performance |
| Timeline |
| Pintec Technology |
| SEI Investments |
Pintec Technology and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and SEI Investments
The main advantage of trading using opposite Pintec Technology and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, SEI Investments 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 SEI Investments will offset losses from the drop in SEI Investments' long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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