Correlation Between Pintec Technology and Vinci Partners

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

Diversification Opportunities for Pintec Technology and Vinci Partners

-0.5

Correlation Coefficient

Pintec Technology  Vinci Partners

Very good diversification

The 3 months correlation between Pintec and Vinci is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Vinci Partners Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci Partners Inves 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 Vinci Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci Partners Inves has no effect on the direction of Pintec Technology i.e., Pintec Technology and Vinci Partners go up and down completely randomly.

Pair Corralation between Pintec Technology and Vinci Partners

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 3.49 times more return on investment than Vinci Partners. However, Pintec Technology is 3.49 times more volatile than Vinci Partners Investments. It trades about 0.07 of its potential returns per unit of risk. Vinci Partners Investments is currently generating about -0.06 per unit of risk. If you would invest  91.00  in Pintec Technology Holdings on September 12, 2024 and sell it today you would earn a total of  4.00  from holding Pintec Technology Holdings or generate 4.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Pintec Technology Holdings  vs.  Vinci Partners Investments

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.

Vinci Partners Inves

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vinci Partners Investments are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Vinci Partners may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Pintec Technology and Vinci Partners

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

The idea behind Pintec Technology Holdings and Vinci Partners Investments 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.