Correlation Between Avient Corp and CONSOLIDATED
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By analyzing existing cross correlation between Avient Corp and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on Avient Corp and CONSOLIDATED 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 CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and CONSOLIDATED.
Diversification Opportunities for Avient Corp and CONSOLIDATED
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Avient and CONSOLIDATED is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Avient Corp i.e., Avient Corp and CONSOLIDATED go up and down completely randomly.
Pair Corralation between Avient Corp and CONSOLIDATED
Given the investment horizon of 90 days Avient Corp is expected to generate 0.98 times more return on investment than CONSOLIDATED. However, Avient Corp is 1.02 times less risky than CONSOLIDATED. It trades about 0.05 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.02 per unit of risk. If you would invest 3,297 in Avient Corp on September 2, 2024 and sell it today you would earn a total of 1,828 from holding Avient Corp or generate 55.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.65% |
| Values | Daily Returns |
Avient Corp vs. CONSOLIDATED EDISON N
Performance |
| Timeline |
| Avient Corp |
| CONSOLIDATED EDISON |
Avient Corp and CONSOLIDATED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and CONSOLIDATED
The main advantage of trading using opposite Avient Corp and CONSOLIDATED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, CONSOLIDATED 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 CONSOLIDATED will offset losses from the drop in CONSOLIDATED's long position.| Avient Corp vs. Linde plc Ordinary | Avient Corp vs. Air Products and | Avient Corp vs. Aquagold International | Avient Corp vs. Thrivent High Yield |
| CONSOLIDATED vs. Afya | CONSOLIDATED vs. Avient Corp | CONSOLIDATED vs. Parker Hannifin | CONSOLIDATED vs. Stepan Company |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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