Correlation Between Pintec Technology and Virtu Financial
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Virtu Financial 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 Virtu Financial 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 Virtu Financial, you can compare the effects of market volatilities on Pintec Technology and Virtu Financial 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 Virtu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Virtu Financial.
Diversification Opportunities for Pintec Technology and Virtu Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Virtu is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Virtu Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtu Financial 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 Virtu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtu Financial has no effect on the direction of Pintec Technology i.e., Pintec Technology and Virtu Financial go up and down completely randomly.
Pair Corralation between Pintec Technology and Virtu Financial
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.07 times more return on investment than Virtu Financial. However, Pintec Technology is 2.07 times more volatile than Virtu Financial. It trades about 0.05 of its potential returns per unit of risk. Virtu Financial is currently generating about 0.07 per unit of risk. If you would invest 53.00 in Pintec Technology Holdings on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Pintec Technology Holdings or generate 81.13% 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. Virtu Financial
Performance |
| Timeline |
| Pintec Technology |
| Virtu Financial |
Pintec Technology and Virtu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and Virtu Financial
The main advantage of trading using opposite Pintec Technology and Virtu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Virtu Financial 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 Virtu Financial will offset losses from the drop in Virtu Financial's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| Virtu Financial vs. Raymond James Financial | Virtu Financial vs. Evercore Partners | Virtu Financial vs. Selective Insurance Group | Virtu Financial vs. Reinsurance Group of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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