Correlation Between Pintec Technology and SWK Holdings
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and SWK Holdings 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 SWK Holdings 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 SWK Holdings, you can compare the effects of market volatilities on Pintec Technology and SWK Holdings 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 SWK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and SWK Holdings.
Diversification Opportunities for Pintec Technology and SWK Holdings
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and SWK is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and SWK Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWK 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 SWK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWK Holdings has no effect on the direction of Pintec Technology i.e., Pintec Technology and SWK Holdings go up and down completely randomly.
Pair Corralation between Pintec Technology and SWK Holdings
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the SWK Holdings. In addition to that, Pintec Technology is 7.66 times more volatile than SWK Holdings. It trades about -0.02 of its total potential returns per unit of risk. SWK Holdings is currently generating about -0.09 per unit of volatility. If you would invest 2,568 in SWK Holdings on August 29, 2024 and sell it today you would lose (20.00) from holding SWK Holdings or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pintec Technology Holdings vs. SWK Holdings
Performance |
| Timeline |
| Pintec Technology |
| SWK Holdings |
Pintec Technology and SWK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and SWK Holdings
The main advantage of trading using opposite Pintec Technology and SWK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, SWK Holdings 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 SWK Holdings will offset losses from the drop in SWK Holdings' long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| SWK Holdings vs. PACCAR Inc | SWK Holdings vs. Pure Cycle | SWK Holdings vs. Adient PLC | SWK Holdings vs. Kenon 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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