Correlation Between Pintec Technology and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Pintec Technology and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Uber Technologies.
Diversification Opportunities for Pintec Technology and Uber Technologies
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pintec and Uber is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Pintec Technology i.e., Pintec Technology and Uber Technologies go up and down completely randomly.
Pair Corralation between Pintec Technology and Uber Technologies
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 1.48 times more return on investment than Uber Technologies. However, Pintec Technology is 1.48 times more volatile than Uber Technologies. It trades about 0.0 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.03 per unit of risk. If you would invest 95.00 in Pintec Technology Holdings on September 5, 2024 and sell it today you would lose (1.00) from holding Pintec Technology Holdings or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Uber Technologies
Performance |
| Timeline |
| Pintec Technology |
| Uber Technologies |
Pintec Technology and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Uber Technologies
The main advantage of trading using opposite Pintec Technology and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Pintec Technology vs. 360 Finance | Pintec Technology vs. Enova International | Pintec Technology vs. Navient Corp | Pintec Technology vs. Sentage Holdings |
| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |