Correlation Between Cion Investment and Patria Investments
Can any of the company-specific risk be diversified away by investing in both Cion Investment and Patria Investments 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 Cion Investment and Patria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cion Investment Corp and Patria Investments, you can compare the effects of market volatilities on Cion Investment and Patria Investments 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 Cion Investment with a short position of Patria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cion Investment and Patria Investments.
Diversification Opportunities for Cion Investment and Patria Investments
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cion and Patria is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cion Investment Corp and Patria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Investments and Cion Investment 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 Cion Investment Corp are associated (or correlated) with Patria Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Investments has no effect on the direction of Cion Investment i.e., Cion Investment and Patria Investments go up and down completely randomly.
Pair Corralation between Cion Investment and Patria Investments
Given the investment horizon of 90 days Cion Investment Corp is expected to under-perform the Patria Investments. But the stock apears to be less risky and, when comparing its historical volatility, Cion Investment Corp is 1.25 times less risky than Patria Investments. The stock trades about -0.03 of its potential returns per unit of risk. The Patria Investments is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,160 in Patria Investments on August 27, 2024 and sell it today you would earn a total of 88.00 from holding Patria Investments or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cion Investment Corp vs. Patria Investments
Performance |
| Timeline |
| Cion Investment Corp |
| Patria Investments |
Cion Investment and Patria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cion Investment and Patria Investments
The main advantage of trading using opposite Cion Investment and Patria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cion Investment position performs unexpectedly, Patria Investments 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 Patria Investments will offset losses from the drop in Patria Investments' long position.| Cion Investment vs. Federated Premier Municipal | Cion Investment vs. Blackrock Muniyield | Cion Investment vs. Diamond Hill Investment | Cion Investment vs. NXG NextGen Infrastructure |
| Patria Investments vs. Invesco Advantage MIT | Patria Investments vs. Invesco Municipal Trust | Patria Investments vs. Invesco California Value | Patria Investments vs. Brightsphere Investment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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