Correlation Between Pintec Technology and Evercore Partners

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

Diversification Opportunities for Pintec Technology and Evercore Partners

-0.54

Correlation Coefficient

Pintec Technology  Evercore Partners

Excellent diversification

The 3 months correlation between Pintec and Evercore is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Evercore Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evercore Partners 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 Evercore Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evercore Partners has no effect on the direction of Pintec Technology i.e., Pintec Technology and Evercore Partners go up and down completely randomly.

Pair Corralation between Pintec Technology and Evercore Partners

Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 1.13 times less return on investment than Evercore Partners. In addition to that, Pintec Technology is 2.25 times more volatile than Evercore Partners. It trades about 0.05 of its total potential returns per unit of risk. Evercore Partners is currently generating about 0.12 per unit of volatility. If you would invest  10,395  in Evercore Partners on August 30, 2024 and sell it today you would earn a total of  20,415  from holding Evercore Partners or generate 196.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pintec Technology Holdings  vs.  Evercore Partners

Pintec Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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

Evercore Partners

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evercore Partners are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Evercore Partners reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pintec Technology and Evercore Partners

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

The idea behind Pintec Technology Holdings and Evercore Partners 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..