Correlation Between Pintec Technology and Carlyle Secured

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

Diversification Opportunities for Pintec Technology and Carlyle Secured

-0.23

Correlation Coefficient

Pintec Technology  Carlyle Secured

Very good diversification

The 3 months correlation between Pintec and Carlyle is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pintec Technology Holdings and Carlyle Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Secured Lending 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 Carlyle Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Secured Lending has no effect on the direction of Pintec Technology i.e., Pintec Technology and Carlyle Secured go up and down completely randomly.

Pair Corralation between Pintec Technology and Carlyle Secured

Allowing for the 90-day total investment horizon Pintec Technology Holdings is expected to generate 2.47 times more return on investment than Carlyle Secured. However, Pintec Technology is 2.47 times more volatile than Carlyle Secured Lending. It trades about 0.01 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about -0.33 per unit of risk. If you would invest  95.00  in Pintec Technology Holdings on August 20, 2024 and sell it today you would earn a total of  0.00  from holding Pintec Technology Holdings or generate 0.0% 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.  Carlyle Secured Lending

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.

Carlyle Secured Lending

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Carlyle Secured Lending are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, Carlyle Secured is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Pintec Technology and Carlyle Secured

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

The idea behind Pintec Technology Holdings and Carlyle Secured Lending 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.