Correlation Between Radcom and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Radcom 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 Radcom and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radcom and Pintec Technology Holdings, you can compare the effects of market volatilities on Radcom 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 Radcom with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radcom and Pintec Technology.
Diversification Opportunities for Radcom and Pintec Technology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Radcom and Pintec is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Radcom 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 Radcom 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 Radcom i.e., Radcom and Pintec Technology go up and down completely randomly.
Pair Corralation between Radcom and Pintec Technology
Given the investment horizon of 90 days Radcom is expected to generate 1.27 times more return on investment than Pintec Technology. However, Radcom is 1.27 times more volatile than Pintec Technology Holdings. It trades about 0.17 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,055 in Radcom on September 1, 2024 and sell it today you would earn a total of 140.00 from holding Radcom or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Radcom vs. Pintec Technology Holdings
Performance |
| Timeline |
| Radcom |
| Pintec Technology |
Radcom and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radcom and Pintec Technology
The main advantage of trading using opposite Radcom and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radcom 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.| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
| Pintec Technology vs. 360 Finance | Pintec Technology vs. Atlanticus Holdings | Pintec Technology vs. Qudian Inc | Pintec Technology vs. Enova 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 Stocks Directory module to find actively traded stocks across global markets.
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