Correlation Between PowerUp Acquisition and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and Pintec Technology 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 PowerUp Acquisition and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PowerUp Acquisition Corp and Pintec Technology Holdings, you can compare the effects of market volatilities on PowerUp Acquisition and Pintec Technology 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 PowerUp Acquisition with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Pintec Technology.
Diversification Opportunities for PowerUp Acquisition and Pintec Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PowerUp and Pintec is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and PowerUp Acquisition 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 PowerUp Acquisition Corp are associated (or correlated) with Pintec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pintec Technology has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Pintec Technology go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Pintec Technology
Assuming the 90 days horizon PowerUp Acquisition is expected to generate 5.31 times less return on investment than Pintec Technology. But when comparing it to its historical volatility, PowerUp Acquisition Corp is 2.33 times less risky than Pintec Technology. It trades about 0.02 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. 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 | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Pintec Technology Holdings
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Pintec Technology |
PowerUp Acquisition and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Pintec Technology
The main advantage of trading using opposite PowerUp Acquisition and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, Pintec Technology 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 Pintec Technology will offset losses from the drop in Pintec Technology's long position.| PowerUp Acquisition vs. ClimateRock Class A | PowerUp Acquisition vs. CF Acquisition VII | PowerUp Acquisition vs. DP Cap Acquisition |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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