Correlation Between Weyco and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Weyco 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 Weyco and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weyco Group and Pintec Technology Holdings, you can compare the effects of market volatilities on Weyco 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 Weyco with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and Pintec Technology.
Diversification Opportunities for Weyco and Pintec Technology
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weyco and Pintec is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Weyco 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 Weyco Group 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 Weyco i.e., Weyco and Pintec Technology go up and down completely randomly.
Pair Corralation between Weyco and Pintec Technology
Given the investment horizon of 90 days Weyco Group is expected to under-perform the Pintec Technology. But the stock apears to be less risky and, when comparing its historical volatility, Weyco Group is 2.04 times less risky than Pintec Technology. The stock trades about -0.25 of its potential returns per unit of risk. The Pintec Technology Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Pintec Technology Holdings on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Pintec Technology Holdings or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weyco Group vs. Pintec Technology Holdings
Performance |
| Timeline |
| Weyco Group |
| Pintec Technology |
Weyco and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and Pintec Technology
The main advantage of trading using opposite Weyco and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco 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.The idea behind Weyco Group and Pintec Technology Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pintec Technology vs. American Express | Pintec Technology vs. Capital One Financial | Pintec Technology vs. Upstart Holdings | Pintec Technology vs. Ally Financial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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