Correlation Between NCR Voyix and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both NCR Voyix 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 NCR Voyix and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NCR Voyix and Pintec Technology Holdings, you can compare the effects of market volatilities on NCR Voyix 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 NCR Voyix with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCR Voyix and Pintec Technology.
Diversification Opportunities for NCR Voyix and Pintec Technology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NCR and Pintec is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding NCR Voyix and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and NCR Voyix 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 NCR Voyix 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 NCR Voyix i.e., NCR Voyix and Pintec Technology go up and down completely randomly.
Pair Corralation between NCR Voyix and Pintec Technology
Considering the 90-day investment horizon NCR Voyix is expected to generate 4.36 times less return on investment than Pintec Technology. But when comparing it to its historical volatility, NCR Voyix is 1.28 times less risky than Pintec Technology. It trades about 0.01 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Pintec Technology Holdings on August 27, 2024 and sell it today you would earn a total of 17.00 from holding Pintec Technology Holdings or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NCR Voyix vs. Pintec Technology Holdings
Performance |
| Timeline |
| NCR Voyix |
| Pintec Technology |
NCR Voyix and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCR Voyix and Pintec Technology
The main advantage of trading using opposite NCR Voyix and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCR Voyix 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.| NCR Voyix vs. Pintec Technology Holdings | NCR Voyix vs. Discover Financial Services | NCR Voyix vs. AmTrust Financial Services | NCR Voyix vs. Western Union Co |
| Pintec Technology vs. SLM Corp | Pintec Technology vs. Orix Corp Ads | Pintec Technology vs. FirstCash | Pintec Technology vs. Medallion Financial Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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