Correlation Between Enlight Renewable and Pintec Technology

Can any of the company-specific risk be diversified away by investing in both Enlight Renewable 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 Enlight Renewable and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enlight Renewable Energy and Pintec Technology Holdings, you can compare the effects of market volatilities on Enlight Renewable 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 Enlight Renewable with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and Pintec Technology.

Diversification Opportunities for Enlight Renewable and Pintec Technology

0.4

Correlation Coefficient

Enlight Renewable  Pintec Technology

Very weak diversification

The 3 months correlation between Enlight and Pintec is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Enlight Renewable 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 Enlight Renewable Energy 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 Enlight Renewable i.e., Enlight Renewable and Pintec Technology go up and down completely randomly.

Pair Corralation between Enlight Renewable and Pintec Technology

Given the investment horizon of 90 days Enlight Renewable Energy is expected to generate 1.0 times more return on investment than Pintec Technology. However, Enlight Renewable Energy is 1.0 times less risky than Pintec Technology. It trades about 0.08 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.07 per unit of risk. If you would invest  1,546  in Enlight Renewable Energy on December 19, 2024 and sell it today you would earn a total of  155.00  from holding Enlight Renewable Energy or generate 10.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Enlight Renewable Energy  vs.  Pintec Technology Holdings

Enlight Renewable Energy

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Enlight Renewable Energy are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Enlight Renewable may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pintec Technology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pintec Technology Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Pintec Technology may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Enlight Renewable and Pintec Technology

The main advantage of trading using opposite Enlight Renewable and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable 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 Enlight Renewable Energy 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.