Correlation Between Oneconnect Financial and PBTS Old

Can any of the company-specific risk be diversified away by investing in both Oneconnect Financial and PBTS Old 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 Oneconnect Financial and PBTS Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oneconnect Financial Technology and PBTS Old, you can compare the effects of market volatilities on Oneconnect Financial and PBTS Old 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 Oneconnect Financial with a short position of PBTS Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneconnect Financial and PBTS Old.

Diversification Opportunities for Oneconnect Financial and PBTS Old

0.18

Correlation Coefficient

Oneconnect Financial  PBTS Old

Average diversification

The 3 months correlation between Oneconnect and PBTS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oneconnect Financial Technolog and PBTS Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PBTS Old and Oneconnect 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 Oneconnect Financial Technology are associated (or correlated) with PBTS Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PBTS Old has no effect on the direction of Oneconnect Financial i.e., Oneconnect Financial and PBTS Old go up and down completely randomly.

Pair Corralation between Oneconnect Financial and PBTS Old

If you would invest  30.00  in PBTS Old on October 9, 2024 and sell it today you would earn a total of  0.00  from holding PBTS Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Oneconnect Financial Technolog  vs.  PBTS Old

Oneconnect Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oneconnect Financial Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

PBTS Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PBTS Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PBTS Old is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Oneconnect Financial and PBTS Old

The main advantage of trading using opposite Oneconnect Financial and PBTS Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneconnect Financial position performs unexpectedly, PBTS Old 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 PBTS Old will offset losses from the drop in PBTS Old's long position.

The idea behind Oneconnect Financial Technology and PBTS Old 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.