Correlation Between Axos Financial and Cion Investment
Can any of the company-specific risk be diversified away by investing in both Axos Financial and Cion Investment 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 Axos Financial and Cion Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Cion Investment Corp, you can compare the effects of market volatilities on Axos Financial and Cion Investment 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 Axos Financial with a short position of Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Cion Investment.
Diversification Opportunities for Axos Financial and Cion Investment
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axos and Cion is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment Corp and Axos Financial 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 Axos Financial are associated (or correlated) with Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of Axos Financial i.e., Axos Financial and Cion Investment go up and down completely randomly.
Pair Corralation between Axos Financial and Cion Investment
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 3.53 times more return on investment than Cion Investment. However, Axos Financial is 3.53 times more volatile than Cion Investment Corp. It trades about 0.23 of its potential returns per unit of risk. Cion Investment Corp is currently generating about -0.04 per unit of risk. If you would invest 6,521 in Axos Financial on September 4, 2024 and sell it today you would earn a total of 1,562 from holding Axos Financial or generate 23.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. Cion Investment Corp
Performance |
| Timeline |
| Axos Financial |
| Cion Investment Corp |
Axos Financial and Cion Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Cion Investment
The main advantage of trading using opposite Axos Financial and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, Cion Investment 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 Cion Investment will offset losses from the drop in Cion Investment's long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| Cion Investment vs. Visa Class A | Cion Investment vs. Diamond Hill Investment | Cion Investment vs. Distoken Acquisition | Cion Investment vs. Associated Capital Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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