Correlation Between Credit Acceptance and Patria Investments
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance 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 Credit Acceptance and Patria Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and Patria Investments Limited, you can compare the effects of market volatilities on Credit Acceptance 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 Credit Acceptance with a short position of Patria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and Patria Investments.
Diversification Opportunities for Credit Acceptance and Patria Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Patria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and Patria Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Investments and Credit Acceptance 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 Credit Acceptance 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 Credit Acceptance i.e., Credit Acceptance and Patria Investments go up and down completely randomly.
Pair Corralation between Credit Acceptance and Patria Investments
If you would invest 32,500 in Credit Acceptance on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. Patria Investments Limited
Performance |
| Timeline |
| Credit Acceptance |
| Patria Investments |
Credit Acceptance and Patria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and Patria Investments
The main advantage of trading using opposite Credit Acceptance and Patria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance 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.| Credit Acceptance vs. Broadridge Financial Solutions, | Credit Acceptance vs. Clover Health Investments, | Credit Acceptance vs. MAHLE Metal Leve | Credit Acceptance vs. Elevance Health, |
| Patria Investments vs. Taiwan Semiconductor Manufacturing | Patria Investments vs. Apple Inc | Patria Investments vs. Alibaba Group Holding | Patria Investments vs. Microsoft |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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