Correlation Between Pintec Technology and Orix Corp

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

Diversification Opportunities for Pintec Technology and Orix Corp

-0.29
  Correlation Coefficient

Very good diversification

The 1 month correlation between Pintec and Orix is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Orix Corp Ads in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orix Corp Ads 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 Orix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orix Corp Ads has no effect on the direction of Pintec Technology i.e., Pintec Technology and Orix Corp go up and down completely randomly.

Pair Corralation between Pintec Technology and Orix Corp

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 7.4 times more return on investment than Orix Corp. However, Pintec Technology is 7.4 times more volatile than Orix Corp Ads. It trades about 0.02 of its potential returns per unit of risk. Orix Corp Ads is currently generating about 0.04 per unit of risk. If you would invest  301.00  in Pintec Technology Holdings on January 17, 2024 and sell it today you would lose (194.00) from holding Pintec Technology Holdings or give up 64.45% of portfolio value over 90 days.
Time Period1 Month [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Pintec Technology Holdings  vs.  Orix Corp Ads

 Performance 
       Timeline  
Pintec Technology 

Risk-Adjusted Performance

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Weak
 
Strong
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.
Orix Corp Ads 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
OK
Over the last 90 days Orix Corp Ads has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pintec Technology and Orix Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pintec Technology and Orix Corp

The main advantage of trading using opposite Pintec Technology and Orix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pintec Technology position performs unexpectedly, Orix Corp 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 Orix Corp will offset losses from the drop in Orix Corp's long position.
The idea behind Pintec Technology Holdings and Orix Corp Ads 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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