Correlation Between Pintec Technology and Visa
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Visa 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 Visa 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 Visa Class A, you can compare the effects of market volatilities on Pintec Technology and Visa 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 Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Visa.
Diversification Opportunities for Pintec Technology and Visa
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Visa is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Visa Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Class A 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Class A has no effect on the direction of Pintec Technology i.e., Pintec Technology and Visa go up and down completely randomly.
Pair Corralation between Pintec Technology and Visa
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Visa. In addition to that, Pintec Technology is 2.48 times more volatile than Visa Class A. It trades about -0.01 of its total potential returns per unit of risk. Visa Class A is currently generating about 0.08 per unit of volatility. If you would invest 25,450 in Visa Class A on August 27, 2024 and sell it today you would earn a total of 5,542 from holding Visa Class A or generate 21.78% 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. Visa Class A
Performance |
| Timeline |
| Pintec Technology |
| Visa Class A |
Pintec Technology and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Visa
The main advantage of trading using opposite Pintec Technology and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |