Correlation Between Avient Corp and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both Avient Corp and Quaker Chemical 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 Avient Corp and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avient Corp and Quaker Chemical, you can compare the effects of market volatilities on Avient Corp and Quaker Chemical 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 Avient Corp with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and Quaker Chemical.
Diversification Opportunities for Avient Corp and Quaker Chemical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Avient and Quaker is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and Avient Corp 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 Avient Corp are associated (or correlated) with Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of Avient Corp i.e., Avient Corp and Quaker Chemical go up and down completely randomly.
Pair Corralation between Avient Corp and Quaker Chemical
Given the investment horizon of 90 days Avient Corp is expected to generate 0.96 times more return on investment than Quaker Chemical. However, Avient Corp is 1.04 times less risky than Quaker Chemical. It trades about 0.02 of its potential returns per unit of risk. Quaker Chemical is currently generating about -0.02 per unit of risk. If you would invest 3,761 in Avient Corp on October 20, 2024 and sell it today you would earn a total of 483.00 from holding Avient Corp or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avient Corp vs. Quaker Chemical
Performance |
| Timeline |
| Avient Corp |
| Quaker Chemical |
Avient Corp and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and Quaker Chemical
The main advantage of trading using opposite Avient Corp and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, Quaker Chemical 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 Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
| Quaker Chemical vs. Minerals Technologies | Quaker Chemical vs. Innospec | Quaker Chemical vs. H B Fuller | Quaker Chemical vs. Cabot |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |