Correlation Between Pintec Technology and ASE Industrial
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and ASE Industrial 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 Pintec Technology and ASE Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pintec Technology Holdings and ASE Industrial Holding, you can compare the effects of market volatilities on Pintec Technology and ASE Industrial 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 Pintec Technology with a short position of ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and ASE Industrial.
Diversification Opportunities for Pintec Technology and ASE Industrial
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pintec and ASE is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and ASE Industrial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASE Industrial Holding and Pintec Technology 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 Pintec Technology Holdings are associated (or correlated) with ASE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASE Industrial Holding has no effect on the direction of Pintec Technology i.e., Pintec Technology and ASE Industrial go up and down completely randomly.
Pair Corralation between Pintec Technology and ASE Industrial
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 0.88 times more return on investment than ASE Industrial. However, Pintec Technology Holdings is 1.13 times less risky than ASE Industrial. It trades about 0.06 of its potential returns per unit of risk. ASE Industrial Holding is currently generating about 0.01 per unit of risk. If you would invest 92.00 in Pintec Technology Holdings on December 18, 2024 and sell it today you would earn a total of 6.00 from holding Pintec Technology Holdings or generate 6.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pintec Technology Holdings vs. ASE Industrial Holding
Performance |
Timeline |
Pintec Technology |
ASE Industrial Holding |
Pintec Technology and ASE Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pintec Technology and ASE Industrial
The main advantage of trading using opposite Pintec Technology and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, ASE Industrial 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 ASE Industrial will offset losses from the drop in ASE Industrial's long position.Pintec Technology vs. Senmiao Technology | Pintec Technology vs. X Financial Class | Pintec Technology vs. Yirendai | Pintec Technology vs. Qudian Inc |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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