Correlation Between Comvex SA and Patria Bank
Can any of the company-specific risk be diversified away by investing in both Comvex SA and Patria Bank 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 Comvex SA and Patria Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comvex SA and Patria Bank SA, you can compare the effects of market volatilities on Comvex SA and Patria Bank 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 Comvex SA with a short position of Patria Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comvex SA and Patria Bank.
Diversification Opportunities for Comvex SA and Patria Bank
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Comvex and Patria is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Comvex SA and Patria Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Bank SA and Comvex SA 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 Comvex SA are associated (or correlated) with Patria Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Bank SA has no effect on the direction of Comvex SA i.e., Comvex SA and Patria Bank go up and down completely randomly.
Pair Corralation between Comvex SA and Patria Bank
Assuming the 90 days trading horizon Comvex SA is expected to generate 3.17 times more return on investment than Patria Bank. However, Comvex SA is 3.17 times more volatile than Patria Bank SA. It trades about 0.0 of its potential returns per unit of risk. Patria Bank SA is currently generating about -0.14 per unit of risk. If you would invest 7,850 in Comvex SA on September 1, 2024 and sell it today you would lose (100.00) from holding Comvex SA or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comvex SA vs. Patria Bank SA
Performance |
| Timeline |
| Comvex SA |
| Patria Bank SA |
Comvex SA and Patria Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comvex SA and Patria Bank
The main advantage of trading using opposite Comvex SA and Patria Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comvex SA position performs unexpectedly, Patria Bank 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 Bank will offset losses from the drop in Patria Bank's long position.| Comvex SA vs. Evergent Investments SA | Comvex SA vs. Turism Hotelur | Comvex SA vs. Safetech Innovations SA | Comvex SA vs. Biofarm Bucure |
| Patria Bank vs. Teraplast Bist | Patria Bank vs. Electroarges S | Patria Bank vs. Comvex SA | Patria Bank vs. Feper SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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