Correlation Between Avient Corp and CITIGROUP
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By analyzing existing cross correlation between Avient Corp and CITIGROUP INC 44, you can compare the effects of market volatilities on Avient Corp and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and CITIGROUP.
Diversification Opportunities for Avient Corp and CITIGROUP
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Avient and CITIGROUP is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and CITIGROUP INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 44 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 44 has no effect on the direction of Avient Corp i.e., Avient Corp and CITIGROUP go up and down completely randomly.
Pair Corralation between Avient Corp and CITIGROUP
Given the investment horizon of 90 days Avient Corp is expected to generate 4.03 times more return on investment than CITIGROUP. However, Avient Corp is 4.03 times more volatile than CITIGROUP INC 44. It trades about 0.05 of its potential returns per unit of risk. CITIGROUP INC 44 is currently generating about 0.01 per unit of risk. If you would invest 3,351 in Avient Corp on September 3, 2024 and sell it today you would earn a total of 1,774 from holding Avient Corp or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Avient Corp vs. CITIGROUP INC 44
Performance |
| Timeline |
| Avient Corp |
| CITIGROUP INC 44 |
Avient Corp and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and CITIGROUP
The main advantage of trading using opposite Avient Corp and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
| CITIGROUP vs. Ralph Lauren Corp | CITIGROUP vs. Nike Inc | CITIGROUP vs. Avient Corp | CITIGROUP vs. Sealed Air |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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