Correlation Between Pintec Technology and Victory Capital
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Victory Capital 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 Victory Capital 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 Victory Capital Holdings, you can compare the effects of market volatilities on Pintec Technology and Victory Capital 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 Victory Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Victory Capital.
Diversification Opportunities for Pintec Technology and Victory Capital
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and Victory is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Victory Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Capital Holdings 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 Victory Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Capital Holdings has no effect on the direction of Pintec Technology i.e., Pintec Technology and Victory Capital go up and down completely randomly.
Pair Corralation between Pintec Technology and Victory Capital
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Victory Capital. In addition to that, Pintec Technology is 1.33 times more volatile than Victory Capital Holdings. It trades about -0.01 of its total potential returns per unit of risk. Victory Capital Holdings is currently generating about 0.17 per unit of volatility. If you would invest 3,109 in Victory Capital Holdings on August 26, 2024 and sell it today you would earn a total of 3,727 from holding Victory Capital Holdings or generate 119.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. Victory Capital Holdings
Performance |
| Timeline |
| Pintec Technology |
| Victory Capital Holdings |
Pintec Technology and Victory Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Victory Capital
The main advantage of trading using opposite Pintec Technology and Victory Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Victory Capital 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 Victory Capital will offset losses from the drop in Victory Capital's long position.| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
| Victory Capital vs. PowerUp Acquisition Corp | Victory Capital vs. Aurora Innovation | Victory Capital vs. HUMANA INC | Victory Capital vs. Aquagold 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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