Correlation Between Patria Investments and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Patria Investments and Associated Capital 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 Patria Investments and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Patria Investments and Associated Capital Group, you can compare the effects of market volatilities on Patria Investments and Associated Capital 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 Patria Investments with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patria Investments and Associated Capital.
Diversification Opportunities for Patria Investments and Associated Capital
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Patria and Associated is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Patria Investments and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and Patria Investments 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 Patria Investments are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Patria Investments i.e., Patria Investments and Associated Capital go up and down completely randomly.
Pair Corralation between Patria Investments and Associated Capital
Considering the 90-day investment horizon Patria Investments is expected to generate 1.63 times less return on investment than Associated Capital. In addition to that, Patria Investments is 1.23 times more volatile than Associated Capital Group. It trades about 0.09 of its total potential returns per unit of risk. Associated Capital Group is currently generating about 0.18 per unit of volatility. If you would invest 3,426 in Associated Capital Group on November 1, 2024 and sell it today you would earn a total of 186.00 from holding Associated Capital Group or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Patria Investments vs. Associated Capital Group
Performance |
| Timeline |
| Patria Investments |
| Associated Capital |
Patria Investments and Associated Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patria Investments and Associated Capital
The main advantage of trading using opposite Patria Investments and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patria Investments position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.| Patria Investments vs. Invesco Advantage MIT | Patria Investments vs. Invesco Municipal Trust | Patria Investments vs. Invesco California Value | Patria Investments vs. Ares Management LP |
| Associated Capital vs. Blue Owl Capital | Associated Capital vs. TPG Inc | Associated Capital vs. Patria Investments | Associated Capital vs. Cion Investment Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |