Correlation Between Pintec Technology and Vine Hill

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

Diversification Opportunities for Pintec Technology and Vine Hill

0.22

Correlation Coefficient

Pintec Technology  Vine Hill

Modest diversification

The 3 months correlation between Pintec and Vine is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Vine Hill Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vine Hill Capital 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 Vine Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vine Hill Capital has no effect on the direction of Pintec Technology i.e., Pintec Technology and Vine Hill go up and down completely randomly.

Pair Corralation between Pintec Technology and Vine Hill

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Vine Hill. In addition to that, Pintec Technology is 34.37 times more volatile than Vine Hill Capital. It trades about -0.02 of its total potential returns per unit of risk. Vine Hill Capital is currently generating about 0.25 per unit of volatility. If you would invest  996.00  in Vine Hill Capital on September 16, 2024 and sell it today you would earn a total of  7.00  from holding Vine Hill Capital or generate 0.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	14.11%
Values	Daily Returns

Pintec Technology Holdings  vs.  Vine Hill Capital

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 latest abnormal performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Vine Hill Capital

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vine Hill Capital are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, Vine Hill is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Pintec Technology and Vine Hill

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

The idea behind Pintec Technology Holdings and Vine Hill Capital 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.