Correlation Between 26443TAB2 and Pintec Technology

Can any of the company-specific risk be diversified away by investing in both 26443TAB2 and Pintec Technology 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 26443TAB2 and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US26443TAB26 and Pintec Technology Holdings, you can compare the effects of market volatilities on 26443TAB2 and Pintec Technology 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 26443TAB2 with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26443TAB2 and Pintec Technology.

Diversification Opportunities for 26443TAB2 and Pintec Technology

-0.11

Correlation Coefficient

26443TAB2  Pintec Technology

Good diversification

The 3 months correlation between 26443TAB2 and Pintec is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding US26443TAB26 and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and 26443TAB2 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 US26443TAB26 are associated (or correlated) with Pintec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pintec Technology has no effect on the direction of 26443TAB2 i.e., 26443TAB2 and Pintec Technology go up and down completely randomly.

Pair Corralation between 26443TAB2 and Pintec Technology

Assuming the 90 days trading horizon US26443TAB26 is expected to generate 0.67 times more return on investment than Pintec Technology. However, US26443TAB26 is 1.49 times less risky than Pintec Technology. It trades about 0.08 of its potential returns per unit of risk. Pintec Technology Holdings is currently generating about 0.01 per unit of risk. If you would invest  7,025  in US26443TAB26 on October 24, 2024 and sell it today you would earn a total of  500.00  from holding US26443TAB26 or generate 7.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.67%
Values	Daily Returns

US26443TAB26  vs.  Pintec Technology Holdings

US26443TAB26

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in US26443TAB26 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 26443TAB2 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with 26443TAB2 and Pintec Technology

The main advantage of trading using opposite 26443TAB2 and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26443TAB2 position performs unexpectedly, Pintec Technology 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 Pintec Technology will offset losses from the drop in Pintec Technology's long position.

The idea behind US26443TAB26 and Pintec Technology Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.