Correlation Between Pintec Technology and XAI Octagon
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and XAI Octagon 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 XAI Octagon 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 XAI Octagon Floating, you can compare the effects of market volatilities on Pintec Technology and XAI Octagon 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 XAI Octagon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and XAI Octagon.
Diversification Opportunities for Pintec Technology and XAI Octagon
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pintec and XAI is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and XAI Octagon Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAI Octagon Floating 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 XAI Octagon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAI Octagon Floating has no effect on the direction of Pintec Technology i.e., Pintec Technology and XAI Octagon go up and down completely randomly.
Pair Corralation between Pintec Technology and XAI Octagon
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 4.5 times more return on investment than XAI Octagon. However, Pintec Technology is 4.5 times more volatile than XAI Octagon Floating. It trades about 0.07 of its potential returns per unit of risk. XAI Octagon Floating is currently generating about 0.08 per unit of risk. If you would invest 39.00 in Pintec Technology Holdings on August 28, 2024 and sell it today you would earn a total of 61.00 from holding Pintec Technology Holdings or generate 156.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Pintec Technology Holdings vs. XAI Octagon Floating
Performance |
| Timeline |
| Pintec Technology |
| XAI Octagon Floating |
Pintec Technology and XAI Octagon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pintec Technology and XAI Octagon
The main advantage of trading using opposite Pintec Technology and XAI Octagon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, XAI Octagon 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 XAI Octagon will offset losses from the drop in XAI Octagon's long position.| Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
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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