Correlation Between Lion Financial and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Lion Financial 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 Lion Financial and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Financial Group and Pintec Technology Holdings, you can compare the effects of market volatilities on Lion Financial 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 Lion Financial with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Financial and Pintec Technology.
Diversification Opportunities for Lion Financial and Pintec Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and Pintec is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lion Financial 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 Lion Financial 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 Lion Financial 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 Lion Financial i.e., Lion Financial and Pintec Technology go up and down completely randomly.
Pair Corralation between Lion Financial and Pintec Technology
Assuming the 90 days horizon Lion Financial is expected to generate 3.81 times less return on investment than Pintec Technology. In addition to that, Lion Financial is 2.83 times more volatile than Pintec Technology Holdings. It trades about 0.01 of its total potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.09 per unit of volatility. If you would invest 91.00 in Pintec Technology Holdings on December 27, 2024 and sell it today you would earn a total of 11.00 from holding Pintec Technology Holdings or generate 12.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Lion Financial Group vs. Pintec Technology Holdings
Performance |
Timeline |
Lion Financial Group |
Pintec Technology |
Lion Financial and Pintec Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lion Financial and Pintec Technology
The main advantage of trading using opposite Lion Financial and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Financial 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.Lion Financial vs. Lion Group Holding | Lion Financial vs. Hall of Fame | Lion Financial vs. Aquagold International | Lion Financial vs. Morningstar Unconstrained Allocation |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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