Correlation Between Cion Investment and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Cion Investment and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Opportunity, you can compare the effects of market volatilities on Cion Investment and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cion Investment and Invesco Municipal.
Diversification Opportunities for Cion Investment and Invesco Municipal
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cion and Invesco is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cion Investment Corp and Invesco Municipal Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal has no effect on the direction of Cion Investment i.e., Cion Investment and Invesco Municipal go up and down completely randomly.
Pair Corralation between Cion Investment and Invesco Municipal
Given the investment horizon of 90 days Cion Investment Corp is expected to generate 1.96 times more return on investment than Invesco Municipal. However, Cion Investment is 1.96 times more volatile than Invesco Municipal Opportunity. It trades about 0.2 of its potential returns per unit of risk. Invesco Municipal Opportunity is currently generating about 0.17 per unit of risk. If you would invest 1,130 in Cion Investment Corp on November 5, 2024 and sell it today you would earn a total of 42.00 from holding Cion Investment Corp or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cion Investment Corp vs. Invesco Municipal Opportunity
Performance |
| Timeline |
| Cion Investment Corp |
| Invesco Municipal |
Cion Investment and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cion Investment and Invesco Municipal
The main advantage of trading using opposite Cion Investment and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cion Investment position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal's 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 |
| Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Advantage MIT | Invesco Municipal vs. Invesco Municipal Trust | Invesco Municipal vs. Invesco California Value |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |