Correlation Between Avient Corp and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Avient Corp and Regency Centers 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 Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avient Corp and Regency Centers, you can compare the effects of market volatilities on Avient Corp and Regency Centers 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 Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and Regency Centers.
Diversification Opportunities for Avient Corp and Regency Centers
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Avient and Regency is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Avient Corp i.e., Avient Corp and Regency Centers go up and down completely randomly.
Pair Corralation between Avient Corp and Regency Centers
Given the investment horizon of 90 days Avient Corp is expected to generate 2.43 times more return on investment than Regency Centers. However, Avient Corp is 2.43 times more volatile than Regency Centers. It trades about 0.03 of its potential returns per unit of risk. Regency Centers is currently generating about -0.12 per unit of risk. If you would invest 5,032 in Avient Corp on August 30, 2024 and sell it today you would earn a total of 96.00 from holding Avient Corp or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avient Corp vs. Regency Centers
Performance |
| Timeline |
| Avient Corp |
| Regency Centers |
Avient Corp and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and Regency Centers
The main advantage of trading using opposite Avient Corp and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| Avient Corp vs. Innospec | Avient Corp vs. Minerals Technologies | Avient Corp vs. Oil Dri | Avient Corp vs. H B Fuller |
| Regency Centers vs. Tower One Wireless | Regency Centers vs. Employers Holdings | Regency Centers vs. Assurant | Regency Centers vs. Hooker Furniture |
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 CEOs Directory module to screen CEOs from public companies around the world.
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