Correlation Between Patria Investments and Cion Investment

Can any of the company-specific risk be diversified away by investing in both Patria Investments and Cion Investment 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 Cion Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Patria Investments and Cion Investment Corp, you can compare the effects of market volatilities on Patria Investments and Cion Investment 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 Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patria Investments and Cion Investment.

Diversification Opportunities for Patria Investments and Cion Investment

-0.09

Correlation Coefficient

Patria Investments  Cion Investment

Good diversification

The 3 months correlation between Patria and Cion is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Patria Investments and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment Corp 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 Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of Patria Investments i.e., Patria Investments and Cion Investment go up and down completely randomly.

Pair Corralation between Patria Investments and Cion Investment

Considering the 90-day investment horizon Patria Investments is expected to generate 30.37 times less return on investment than Cion Investment. In addition to that, Patria Investments is 1.27 times more volatile than Cion Investment Corp. It trades about 0.0 of its total potential returns per unit of risk. Cion Investment Corp is currently generating about 0.07 per unit of volatility. If you would invest  752.00  in Cion Investment Corp on September 23, 2024 and sell it today you would earn a total of  413.00  from holding Cion Investment Corp or generate 54.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Patria Investments  vs.  Cion Investment Corp

Patria Investments

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Patria Investments are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Patria Investments is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Cion Investment Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cion Investment Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Cion Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Patria Investments and Cion Investment

The main advantage of trading using opposite Patria Investments and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patria Investments position performs unexpectedly, Cion Investment 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 Cion Investment will offset losses from the drop in Cion Investment's long position.

The idea behind Patria Investments and Cion Investment Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.