Correlation Between Lexinfintech Holdings and Pintec Technology
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and Pintec Technology 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 Lexinfintech Holdings and Pintec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Pintec Technology Holdings, you can compare the effects of market volatilities on Lexinfintech Holdings and Pintec Technology 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 Lexinfintech Holdings with a short position of Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Pintec Technology.
Diversification Opportunities for Lexinfintech Holdings and Pintec Technology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lexinfintech and Pintec is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology and Lexinfintech Holdings 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 Lexinfintech Holdings are associated (or correlated) with Pintec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pintec Technology has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and Pintec Technology go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Pintec Technology
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to under-perform the Pintec Technology. In addition to that, Lexinfintech Holdings is 1.47 times more volatile than Pintec Technology Holdings. It trades about -0.15 of its total potential returns per unit of risk. Pintec Technology Holdings is currently generating about -0.01 per unit of volatility. If you would invest 115.00 in Pintec Technology Holdings on September 9, 2025 and sell it today you would lose (7.00) from holding Pintec Technology Holdings or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. Pintec Technology Holdings
Performance |
| Timeline |
| Lexinfintech Holdings |
| Pintec Technology |
Lexinfintech Holdings and Pintec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Pintec Technology
The main advantage of trading using opposite Lexinfintech Holdings and Pintec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, Pintec Technology 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 Pintec Technology will offset losses from the drop in Pintec Technology's long position.| Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. World Acceptance | Lexinfintech Holdings vs. Nerdwallet |
| Pintec Technology vs. Eason Technology Limited | Pintec Technology vs. Nisun International Enterprise | Pintec Technology vs. Sentage Holdings | Pintec Technology vs. Senmiao Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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