Correlation Between Pintec Technology and Barings Corporate

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

Diversification Opportunities for Pintec Technology and Barings Corporate

-0.35

Correlation Coefficient

Pintec Technology  Barings Corporate

Very good diversification

The 3 months correlation between Pintec and Barings is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Barings Corporate Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Corporate 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 Barings Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Corporate has no effect on the direction of Pintec Technology i.e., Pintec Technology and Barings Corporate go up and down completely randomly.

Pair Corralation between Pintec Technology and Barings Corporate

Allowing for the 90-day total investment horizon Pintec Technology is expected to generate 2.09 times less return on investment than Barings Corporate. In addition to that, Pintec Technology is 3.21 times more volatile than Barings Corporate Investors. It trades about 0.02 of its total potential returns per unit of risk. Barings Corporate Investors is currently generating about 0.12 per unit of volatility. If you would invest  1,884  in Barings Corporate Investors on September 13, 2024 and sell it today you would earn a total of  106.00  from holding Barings Corporate Investors or generate 5.63% 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.  Barings Corporate Investors

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

Barings Corporate

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Barings Corporate Investors are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Barings Corporate is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Pintec Technology and Barings Corporate

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

The idea behind Pintec Technology Holdings and Barings Corporate Investors 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.