Correlation Between Zedge and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Zedge 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 Zedge and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedge Inc and Pintec Technology Holdings, you can compare the effects of market volatilities on Zedge 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 Zedge with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedge and Pintec Technology.
Diversification Opportunities for Zedge and Pintec Technology
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zedge and Pintec is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Zedge Inc and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Zedge 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 Zedge Inc 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 Zedge i.e., Zedge and Pintec Technology go up and down completely randomly.
Pair Corralation between Zedge and Pintec Technology
Given the investment horizon of 90 days Zedge Inc is expected to under-perform the Pintec Technology. In addition to that, Zedge is 1.03 times more volatile than Pintec Technology Holdings. It trades about -0.19 of its total potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.0 per unit of volatility. If you would invest 97.00 in Pintec Technology Holdings on September 1, 2024 and sell it today you would lose (1.00) from holding Pintec Technology Holdings or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zedge Inc vs. Pintec Technology Holdings
Performance |
| Timeline |
| Zedge Inc |
| Pintec Technology |
Zedge and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedge and Pintec Technology
The main advantage of trading using opposite Zedge and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedge 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 Zedge Inc 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. 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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