Correlation Between LithiumBank Resources and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both LithiumBank Resources 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 LithiumBank Resources and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LithiumBank Resources Corp and Pintec Technology Holdings, you can compare the effects of market volatilities on LithiumBank Resources 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 LithiumBank Resources with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of LithiumBank Resources and Pintec Technology.
Diversification Opportunities for LithiumBank Resources and Pintec Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between LithiumBank and Pintec is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding LithiumBank Resources Corp and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and LithiumBank Resources 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 LithiumBank Resources Corp 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 LithiumBank Resources i.e., LithiumBank Resources and Pintec Technology go up and down completely randomly.
Pair Corralation between LithiumBank Resources and Pintec Technology
Assuming the 90 days horizon LithiumBank Resources Corp is expected to generate 2.18 times more return on investment than Pintec Technology. However, LithiumBank Resources is 2.18 times more volatile than Pintec Technology Holdings. It trades about 0.02 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.04 per unit of risk. If you would invest 20.00 in LithiumBank Resources Corp on December 1, 2024 and sell it today you would lose (1.00) from holding LithiumBank Resources Corp or give up 5.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
LithiumBank Resources Corp vs. Pintec Technology Holdings
Performance |
Timeline |
LithiumBank Resources |
Pintec Technology |
LithiumBank Resources and Pintec Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LithiumBank Resources and Pintec Technology
The main advantage of trading using opposite LithiumBank Resources and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LithiumBank Resources 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.LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Focus Graphite | LithiumBank Resources vs. Mineral Res |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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