Correlation Between Pintec Technology and 78409VBL7

Can any of the company-specific risk be diversified away by investing in both Pintec Technology and 78409VBL7 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 78409VBL7 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 SPGI 37 01 MAR 52, you can compare the effects of market volatilities on Pintec Technology and 78409VBL7 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 78409VBL7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and 78409VBL7.

Diversification Opportunities for Pintec Technology and 78409VBL7

0.32

Correlation Coefficient

Pintec Technology  78409VBL7

Weak diversification

The 3 months correlation between Pintec and 78409VBL7 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and SPGI 37 01 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPGI 37 01 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 78409VBL7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPGI 37 01 has no effect on the direction of Pintec Technology i.e., Pintec Technology and 78409VBL7 go up and down completely randomly.

Pair Corralation between Pintec Technology and 78409VBL7

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the 78409VBL7. In addition to that, Pintec Technology is 2.35 times more volatile than SPGI 37 01 MAR 52. It trades about -0.02 of its total potential returns per unit of risk. SPGI 37 01 MAR 52 is currently generating about -0.02 per unit of volatility. If you would invest  7,641  in SPGI 37 01 MAR 52 on September 30, 2024 and sell it today you would lose (312.00) from holding SPGI 37 01 MAR 52 or give up 4.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	87.3%
Values	Daily Returns

Pintec Technology Holdings  vs.  SPGI 37 01 MAR 52

Pintec Technology

Risk-Adjusted Performance

1 of 100

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 abnormal basic indicators, Pintec Technology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

SPGI 37 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPGI 37 01 MAR 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for SPGI 37 01 MAR 52 investors.

Pair Trading with Pintec Technology and 78409VBL7

The main advantage of trading using opposite Pintec Technology and 78409VBL7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, 78409VBL7 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 78409VBL7 will offset losses from the drop in 78409VBL7's long position.

The idea behind Pintec Technology Holdings and SPGI 37 01 MAR 52 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..