Correlation Between Pintec Technology and Univest Pennsylvania

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

Diversification Opportunities for Pintec Technology and Univest Pennsylvania

0.15

Correlation Coefficient

Pintec Technology  Univest Pennsylvania

Average diversification

The 3 months correlation between Pintec and Univest is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania 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 Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Pintec Technology i.e., Pintec Technology and Univest Pennsylvania go up and down completely randomly.

Pair Corralation between Pintec Technology and Univest Pennsylvania

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 1.52 times more return on investment than Univest Pennsylvania. However, Pintec Technology is 1.52 times more volatile than Univest Pennsylvania. It trades about 0.12 of its potential returns per unit of risk. Univest Pennsylvania is currently generating about 0.01 per unit of risk. If you would invest  90.00  in Pintec Technology Holdings on December 28, 2024 and sell it today you would earn a total of  15.00  from holding Pintec Technology Holdings or generate 16.67% 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.  Univest Pennsylvania

Pintec Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pintec Technology Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Pintec Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Univest Pennsylvania

Risk-Adjusted Performance

Very Weak

Over the last 90 days Univest Pennsylvania has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Univest Pennsylvania is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Pintec Technology and Univest Pennsylvania

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

The idea behind Pintec Technology Holdings and Univest Pennsylvania 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.