Correlation Between Pintec Technology and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Pintec Technology and Ameriprise Financial 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 Ameriprise Financial 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 Ameriprise Financial, you can compare the effects of market volatilities on Pintec Technology and Ameriprise Financial 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 Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pintec Technology and Ameriprise Financial.
Diversification Opportunities for Pintec Technology and Ameriprise Financial
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pintec and Ameriprise is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial 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 Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of Pintec Technology i.e., Pintec Technology and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Pintec Technology and Ameriprise Financial
Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to under-perform the Ameriprise Financial. In addition to that, Pintec Technology is 2.07 times more volatile than Ameriprise Financial. It trades about -0.02 of its total potential returns per unit of risk. Ameriprise Financial is currently generating about 0.12 per unit of volatility. If you would invest 42,328 in Ameriprise Financial on September 29, 2024 and sell it today you would earn a total of 11,267 from holding Ameriprise Financial or generate 26.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pintec Technology Holdings vs. Ameriprise Financial
Performance |
Timeline |
Pintec Technology |
Ameriprise Financial |
Pintec Technology and Ameriprise Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pintec Technology and Ameriprise Financial
The main advantage of trading using opposite Pintec Technology and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial's long position.The idea behind Pintec Technology Holdings and Ameriprise Financial 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.Ameriprise Financial vs. State Street Corp | ||
Ameriprise Financial vs. Bank of New | ||
Ameriprise Financial vs. SEI Investments | ||
Ameriprise Financial vs. Principal Financial Group |
Check out your portfolio center.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.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |