Correlation Between Pintec Technology and Lazard

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

Diversification Opportunities for Pintec Technology and Lazard

-0.5

Correlation Coefficient

Pintec Technology  Lazard

Very good diversification

The 3 months correlation between Pintec and Lazard is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Lazard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard 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 Lazard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard has no effect on the direction of Pintec Technology i.e., Pintec Technology and Lazard go up and down completely randomly.

Pair Corralation between Pintec Technology and Lazard

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Lazard. In addition to that, Pintec Technology is 1.57 times more volatile than Lazard. It trades about 0.0 of its total potential returns per unit of risk. Lazard is currently generating about 0.13 per unit of volatility. If you would invest  4,784  in Lazard on September 1, 2024 and sell it today you would earn a total of  1,023  from holding Lazard or generate 21.38% 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.  Lazard

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.

Lazard

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lazard are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Lazard showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pintec Technology and Lazard

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

The idea behind Pintec Technology Holdings and Lazard 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..