Correlation Between Patria Investments and Caixa Seguridade

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

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

Diversification Opportunities for Patria Investments and Caixa Seguridade

-0.83

Correlation Coefficient

Patria Investments  Caixa Seguridade

Pay attention - limited upside

The 3 months correlation between Patria and Caixa is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Patria Investments Limited and Caixa Seguridade Participaes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixa Seguridade Par 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 Limited are associated (or correlated) with Caixa Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixa Seguridade Par has no effect on the direction of Patria Investments i.e., Patria Investments and Caixa Seguridade go up and down completely randomly.

Pair Corralation between Patria Investments and Caixa Seguridade

Assuming the 90 days trading horizon Patria Investments Limited is expected to generate 1.03 times more return on investment than Caixa Seguridade. However, Patria Investments is 1.03 times more volatile than Caixa Seguridade Participaes. It trades about 0.33 of its potential returns per unit of risk. Caixa Seguridade Participaes is currently generating about -0.19 per unit of risk. If you would invest  2,930  in Patria Investments Limited on April 24, 2025 and sell it today you would earn a total of  906.00  from holding Patria Investments Limited or generate 30.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Patria Investments Limited  vs.  Caixa Seguridade Participaes

Patria Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Patria Investments Limited are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Patria Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

Caixa Seguridade Par

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caixa Seguridade Participaes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Patria Investments and Caixa Seguridade

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

The idea behind Patria Investments Limited and Caixa Seguridade Participaes 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.