Correlation Between Pintec Technology and TLGY Acquisition
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and TLGY Acquisition 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 TLGY Acquisition 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 TLGY Acquisition Corp, you can compare the effects of market volatilities on Pintec Technology and TLGY Acquisition 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 TLGY Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and TLGY Acquisition.
Diversification Opportunities for Pintec Technology and TLGY Acquisition
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and TLGY is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and TLGY Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLGY Acquisition Corp 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 TLGY Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLGY Acquisition Corp has no effect on the direction of Pintec Technology i.e., Pintec Technology and TLGY Acquisition go up and down completely randomly.
Pair Corralation between Pintec Technology and TLGY Acquisition
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the TLGY Acquisition. In addition to that, Pintec Technology is 32.5 times more volatile than TLGY Acquisition Corp. It trades about -0.02 of its total potential returns per unit of risk. TLGY Acquisition Corp is currently generating about 0.18 per unit of volatility. If you would invest 1,139 in TLGY Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 25.00 from holding TLGY Acquisition Corp or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pintec Technology Holdings vs. TLGY Acquisition Corp
Performance |
| Timeline |
| Pintec Technology |
| TLGY Acquisition Corp |
Pintec Technology and TLGY Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and TLGY Acquisition
The main advantage of trading using opposite Pintec Technology and TLGY Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, TLGY Acquisition 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 TLGY Acquisition will offset losses from the drop in TLGY Acquisition's long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova International |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |