Correlation Between Pintec Technology and Sunrise Realty
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Sunrise Realty 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 Sunrise Realty 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 Sunrise Realty Trust,, you can compare the effects of market volatilities on Pintec Technology and Sunrise Realty 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 Sunrise Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Sunrise Realty.
Diversification Opportunities for Pintec Technology and Sunrise Realty
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Sunrise is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Sunrise Realty Trust, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrise Realty Trust, 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 Sunrise Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrise Realty Trust, has no effect on the direction of Pintec Technology i.e., Pintec Technology and Sunrise Realty go up and down completely randomly.
Pair Corralation between Pintec Technology and Sunrise Realty
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Sunrise Realty. But the stock apears to be less risky and, when comparing its historical volatility, Pintec Technology Holdings is 1.3 times less risky than Sunrise Realty. The stock trades about -0.03 of its potential returns per unit of risk. The Sunrise Realty Trust, is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,084 in Sunrise Realty Trust, on August 29, 2024 and sell it today you would earn a total of 424.00 from holding Sunrise Realty Trust, or generate 39.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.16% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Sunrise Realty Trust,
Performance |
| Timeline |
| Pintec Technology |
| Sunrise Realty Trust, |
Pintec Technology and Sunrise Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Sunrise Realty
The main advantage of trading using opposite Pintec Technology and Sunrise Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Sunrise Realty 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 Sunrise Realty will offset losses from the drop in Sunrise Realty's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Sunrise Realty vs. Ralph Lauren Corp | Sunrise Realty vs. Under Armour C | Sunrise Realty vs. Citi Trends | Sunrise Realty vs. Duluth Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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