Correlation Between Patria Bank and IHUNT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Patria Bank and IHUNT TECHNOLOGY 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 Bank and IHUNT TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Patria Bank SA and IHUNT TECHNOLOGY IMPORT EXPORT, you can compare the effects of market volatilities on Patria Bank and IHUNT TECHNOLOGY 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 Bank with a short position of IHUNT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patria Bank and IHUNT TECHNOLOGY.
Diversification Opportunities for Patria Bank and IHUNT TECHNOLOGY
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Patria and IHUNT is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Patria Bank SA and IHUNT TECHNOLOGY IMPORT EXPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHUNT TECHNOLOGY IMPORT and Patria Bank 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 Bank SA are associated (or correlated) with IHUNT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHUNT TECHNOLOGY IMPORT has no effect on the direction of Patria Bank i.e., Patria Bank and IHUNT TECHNOLOGY go up and down completely randomly.
Pair Corralation between Patria Bank and IHUNT TECHNOLOGY
Assuming the 90 days trading horizon Patria Bank SA is expected to under-perform the IHUNT TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Patria Bank SA is 3.12 times less risky than IHUNT TECHNOLOGY. The stock trades about -0.13 of its potential returns per unit of risk. The IHUNT TECHNOLOGY IMPORT EXPORT is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 38.00 in IHUNT TECHNOLOGY IMPORT EXPORT on November 5, 2024 and sell it today you would earn a total of 5.00 from holding IHUNT TECHNOLOGY IMPORT EXPORT or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patria Bank SA vs. IHUNT TECHNOLOGY IMPORT EXPORT
Performance |
| Timeline |
| Patria Bank SA |
| IHUNT TECHNOLOGY IMPORT |
Patria Bank and IHUNT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patria Bank and IHUNT TECHNOLOGY
The main advantage of trading using opposite Patria Bank and IHUNT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patria Bank position performs unexpectedly, IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY will offset losses from the drop in IHUNT TECHNOLOGY's long position.| Patria Bank vs. Compania Hoteliera InterContinental | Patria Bank vs. Evergent Investments SA | Patria Bank vs. AROBS TRANSILVANIA SOFTWARE | Patria Bank vs. Turism Hotelur |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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