Correlation Between Pintec Technology and Up Fintech
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Up Fintech 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 Up Fintech 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 Up Fintech Holding, you can compare the effects of market volatilities on Pintec Technology and Up Fintech 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 Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Up Fintech.
Diversification Opportunities for Pintec Technology and Up Fintech
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and TIGR is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding 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 Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of Pintec Technology i.e., Pintec Technology and Up Fintech go up and down completely randomly.
Pair Corralation between Pintec Technology and Up Fintech
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Up Fintech. But the stock apears to be less risky and, when comparing its historical volatility, Pintec Technology Holdings is 2.17 times less risky than Up Fintech. The stock trades about -0.05 of its potential returns per unit of risk. The Up Fintech Holding is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 663.00 in Up Fintech Holding on November 7, 2024 and sell it today you would earn a total of 44.00 from holding Up Fintech Holding or generate 6.64% 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. Up Fintech Holding
Performance |
| Timeline |
| Pintec Technology |
| Up Fintech Holding |
Pintec Technology and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Up Fintech
The main advantage of trading using opposite Pintec Technology and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Up Fintech 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 Up Fintech will offset losses from the drop in Up Fintech's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
| Up Fintech vs. Bit Digital | Up Fintech vs. MARA HOLDINGS INC | Up Fintech vs. Xp Inc | Up Fintech vs. Bitfarms |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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