Correlation Between Pintec Technology and 17327CAN3

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Can any of the company-specific risk be diversified away by investing in both Pintec Technology and 17327CAN3 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 17327CAN3 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 C 2014 25 JAN 26, you can compare the effects of market volatilities on Pintec Technology and 17327CAN3 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 17327CAN3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and 17327CAN3.

Diversification Opportunities for Pintec Technology and 17327CAN3

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between Pintec and 17327CAN3 is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and C 2014 25 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C 2014 25 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 17327CAN3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C 2014 25 has no effect on the direction of Pintec Technology i.e., Pintec Technology and 17327CAN3 go up and down completely randomly.

Pair Corralation between Pintec Technology and 17327CAN3

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 3.35 times more return on investment than 17327CAN3. However, Pintec Technology is 3.35 times more volatile than C 2014 25 JAN 26. It trades about 0.07 of its potential returns per unit of risk. C 2014 25 JAN 26 is currently generating about -0.21 per unit of risk. If you would invest  91.00  in Pintec Technology Holdings on September 12, 2024 and sell it today you would earn a total of  4.00  from holding Pintec Technology Holdings or generate 4.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Pintec Technology Holdings  vs.  C 2014 25 JAN 26

 Performance 
       Timeline  
Pintec Technology 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Pintec Technology Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Pintec Technology is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
C 2014 25 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days C 2014 25 JAN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 17327CAN3 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pintec Technology and 17327CAN3 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pintec Technology and 17327CAN3

The main advantage of trading using opposite Pintec Technology and 17327CAN3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, 17327CAN3 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 17327CAN3 will offset losses from the drop in 17327CAN3's long position.
The idea behind Pintec Technology Holdings and C 2014 25 JAN 26 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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