Correlation Between Pintec Technology and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Spectrum Brands 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 Spectrum Brands 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 Spectrum Brands Holdings, you can compare the effects of market volatilities on Pintec Technology and Spectrum Brands 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 Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Spectrum Brands.
Diversification Opportunities for Pintec Technology and Spectrum Brands
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pintec and Spectrum is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands Holdings 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 Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Pintec Technology i.e., Pintec Technology and Spectrum Brands go up and down completely randomly.
Pair Corralation between Pintec Technology and Spectrum Brands
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.23 times more return on investment than Spectrum Brands. However, Pintec Technology is 2.23 times more volatile than Spectrum Brands Holdings. It trades about 0.07 of its potential returns per unit of risk. Spectrum Brands Holdings is currently generating about -0.04 per unit of risk. If you would invest 91.00 in Pintec Technology Holdings on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Pintec Technology Holdings or generate 4.4% 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. Spectrum Brands Holdings
Performance |
| Timeline |
| Pintec Technology |
| Spectrum Brands Holdings |
Pintec Technology and Spectrum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Spectrum Brands
The main advantage of trading using opposite Pintec Technology and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.| Pintec Technology vs. American Express | Pintec Technology vs. Capital One Financial | Pintec Technology vs. Upstart Holdings | Pintec Technology vs. Ally Financial |
| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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