Correlation Between Pintec Technology and Onity

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

Diversification Opportunities for Pintec Technology and Onity

0.14

Correlation Coefficient

Pintec Technology  Onity

Average diversification

The 3 months correlation between Pintec and Onity is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Onity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onity Group 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 Onity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onity Group has no effect on the direction of Pintec Technology i.e., Pintec Technology and Onity go up and down completely randomly.

Pair Corralation between Pintec Technology and Onity

Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 2.19 times less return on investment than Onity. In addition to that, Pintec Technology is 1.21 times more volatile than Onity Group. It trades about 0.02 of its total potential returns per unit of risk. Onity Group is currently generating about 0.06 per unit of volatility. If you would invest  3,087  in Onity Group on November 28, 2024 and sell it today you would earn a total of  221.00  from holding Onity Group or generate 7.16% return on investment over 90 days.

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

Pintec Technology Holdings  vs.  Onity Group

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.

Onity Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Onity Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady forward indicators, Onity may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Pintec Technology and Onity

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

The idea behind Pintec Technology Holdings and Onity Group 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.