Correlation Between Avient Corp and One Gas
Can any of the company-specific risk be diversified away by investing in both Avient Corp and One Gas 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 One Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avient Corp and One Gas, you can compare the effects of market volatilities on Avient Corp and One Gas 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 One Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and One Gas.
Diversification Opportunities for Avient Corp and One Gas
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avient and One is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas 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 One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of Avient Corp i.e., Avient Corp and One Gas go up and down completely randomly.
Pair Corralation between Avient Corp and One Gas
Given the investment horizon of 90 days Avient Corp is expected to generate 1.01 times less return on investment than One Gas. In addition to that, Avient Corp is 1.15 times more volatile than One Gas. It trades about 0.26 of its total potential returns per unit of risk. One Gas is currently generating about 0.3 per unit of volatility. If you would invest 6,937 in One Gas on September 4, 2024 and sell it today you would earn a total of 741.00 from holding One Gas or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avient Corp vs. One Gas
Performance |
| Timeline |
| Avient Corp |
| One Gas |
Avient Corp and One Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and One Gas
The main advantage of trading using opposite Avient Corp and One Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, One Gas 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 One Gas will offset losses from the drop in One Gas' long position.| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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