Correlation Between Cion Investment and Open Lending

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

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

Diversification Opportunities for Cion Investment and Open Lending

-0.36

Correlation Coefficient

Cion Investment  Open Lending

Very good diversification

The 3 months correlation between Cion and Open is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cion Investment Corp and Open Lending Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open Lending Corp and Cion Investment 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 Cion Investment Corp are associated (or correlated) with Open Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open Lending Corp has no effect on the direction of Cion Investment i.e., Cion Investment and Open Lending go up and down completely randomly.

Pair Corralation between Cion Investment and Open Lending

Given the investment horizon of 90 days Cion Investment Corp is expected to generate 0.37 times more return on investment than Open Lending. However, Cion Investment Corp is 2.68 times less risky than Open Lending. It trades about 0.01 of its potential returns per unit of risk. Open Lending Corp is currently generating about -0.08 per unit of risk. If you would invest  931.00  in Cion Investment Corp on July 9, 2025 and sell it today you would earn a total of  4.00  from holding Cion Investment Corp or generate 0.43% return on investment over 90 days.

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

Cion Investment Corp  vs.  Open Lending Corp

Cion Investment Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Cion Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Open Lending Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Open Lending Corp 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 very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Cion Investment and Open Lending

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

The idea behind Cion Investment Corp and Open Lending 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.

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 Global Correlations module to find global opportunities by holding instruments from different markets.