Correlation Between Avient Corp and SNDL
Can any of the company-specific risk be diversified away by investing in both Avient Corp and SNDL 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 SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avient Corp and SNDL Inc, you can compare the effects of market volatilities on Avient Corp and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and SNDL.
Diversification Opportunities for Avient Corp and SNDL
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avient and SNDL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Avient Corp i.e., Avient Corp and SNDL go up and down completely randomly.
Pair Corralation between Avient Corp and SNDL
Given the investment horizon of 90 days Avient Corp is expected to generate 0.57 times more return on investment than SNDL. However, Avient Corp is 1.74 times less risky than SNDL. It trades about 0.06 of its potential returns per unit of risk. SNDL Inc is currently generating about 0.02 per unit of risk. If you would invest 4,855 in Avient Corp on August 29, 2024 and sell it today you would earn a total of 273.00 from holding Avient Corp or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avient Corp vs. SNDL Inc
Performance |
| Timeline |
| Avient Corp |
| SNDL Inc |
Avient Corp and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and SNDL
The main advantage of trading using opposite Avient Corp and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL's long position.| Avient Corp vs. Direxion Daily FTSE | Avient Corp vs. Collegium Pharmaceutical | Avient Corp vs. KKR Co LP | Avient Corp vs. iShares Dividend and |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |