Correlation Between Pintec Technology and NCR Voyix
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and NCR Voyix 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 NCR Voyix 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 NCR Voyix, you can compare the effects of market volatilities on Pintec Technology and NCR Voyix 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 NCR Voyix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and NCR Voyix.
Diversification Opportunities for Pintec Technology and NCR Voyix
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and NCR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and NCR Voyix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Voyix 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 NCR Voyix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Voyix has no effect on the direction of Pintec Technology i.e., Pintec Technology and NCR Voyix go up and down completely randomly.
Pair Corralation between Pintec Technology and NCR Voyix
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 0.47 times more return on investment than NCR Voyix. However, Pintec Technology Holdings is 2.15 times less risky than NCR Voyix. It trades about 0.04 of its potential returns per unit of risk. NCR Voyix is currently generating about -0.24 per unit of risk. If you would invest 100.00 in Pintec Technology Holdings on January 7, 2025 and sell it today you would earn a total of 1.00 from holding Pintec Technology Holdings or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pintec Technology Holdings vs. NCR Voyix
Performance |
| Timeline |
| Pintec Technology |
| NCR Voyix |
Pintec Technology and NCR Voyix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and NCR Voyix
The main advantage of trading using opposite Pintec Technology and NCR Voyix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, NCR Voyix 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 NCR Voyix will offset losses from the drop in NCR Voyix's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| NCR Voyix vs. Ecolab Inc | NCR Voyix vs. Lincoln Educational Services | NCR Voyix vs. Elite Education Group | NCR Voyix vs. Sensient Technologies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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