Correlation Between Pintec Technology and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Thunder Bridge 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 Thunder Bridge 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 Thunder Bridge Capital, you can compare the effects of market volatilities on Pintec Technology and Thunder Bridge 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 Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Thunder Bridge.
Diversification Opportunities for Pintec Technology and Thunder Bridge
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Thunder is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Pintec Technology i.e., Pintec Technology and Thunder Bridge go up and down completely randomly.
Pair Corralation between Pintec Technology and Thunder Bridge
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 12.37 times more return on investment than Thunder Bridge. However, Pintec Technology is 12.37 times more volatile than Thunder Bridge Capital. It trades about 0.05 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.06 per unit of risk. If you would invest 53.00 in Pintec Technology Holdings on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Pintec Technology Holdings or generate 81.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Thunder Bridge Capital
Performance |
| Timeline |
| Pintec Technology |
| Thunder Bridge Capital |
Pintec Technology and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Thunder Bridge
The main advantage of trading using opposite Pintec Technology and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Thunder Bridge vs. Patria Latin American | Thunder Bridge vs. ABIVAX Socit Anonyme | Thunder Bridge vs. Pinnacle Sherman Multi Strategy | Thunder Bridge vs. Morningstar Unconstrained Allocation |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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