Correlation Between Pintec Technology and T Rowe
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and T Rowe 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 T Rowe 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 T Rowe Price, you can compare the effects of market volatilities on Pintec Technology and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and T Rowe.
Diversification Opportunities for Pintec Technology and T Rowe
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and TROW is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Pintec Technology i.e., Pintec Technology and T Rowe go up and down completely randomly.
Pair Corralation between Pintec Technology and T Rowe
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the T Rowe. In addition to that, Pintec Technology is 2.18 times more volatile than T Rowe Price. It trades about -0.01 of its total potential returns per unit of risk. T Rowe Price is currently generating about 0.05 per unit of volatility. If you would invest 11,269 in T Rowe Price on August 27, 2024 and sell it today you would earn a total of 1,028 from holding T Rowe Price or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. T Rowe Price
Performance |
| Timeline |
| Pintec Technology |
| T Rowe Price |
Pintec Technology and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and T Rowe
The main advantage of trading using opposite Pintec Technology and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| T Rowe vs. Invesco Plc | T Rowe vs. Bank of New | T Rowe vs. Principal Financial Group | T Rowe vs. Ameriprise Financial |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |