Correlation Between Pintec Technology and Bitcoin Depot

Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Bitcoin Depot 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 Bitcoin Depot 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 Bitcoin Depot, you can compare the effects of market volatilities on Pintec Technology and Bitcoin Depot 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 Bitcoin Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Bitcoin Depot.

Diversification Opportunities for Pintec Technology and Bitcoin Depot

0.18

Correlation Coefficient

Pintec Technology  Bitcoin Depot

Average diversification

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

Pair Corralation between Pintec Technology and Bitcoin Depot

Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 1.19 times less return on investment than Bitcoin Depot. But when comparing it to its historical volatility, Pintec Technology Holdings is 3.07 times less risky than Bitcoin Depot. It trades about 0.02 of its potential returns per unit of risk. Bitcoin Depot is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  8.77  in Bitcoin Depot on November 29, 2024 and sell it today you would lose (1.78) from holding Bitcoin Depot or give up 20.3% of portfolio value over 90 days.

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

Pintec Technology Holdings  vs.  Bitcoin Depot

Pintec Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pintec Technology Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Pintec Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Bitcoin Depot

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitcoin Depot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bitcoin Depot is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Pintec Technology and Bitcoin Depot

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

The idea behind Pintec Technology Holdings and Bitcoin Depot 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.