Correlation Between Avient Corp and HERSHEY
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By analyzing existing cross correlation between Avient Corp and HERSHEY 72 percent, you can compare the effects of market volatilities on Avient Corp and HERSHEY 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 HERSHEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and HERSHEY.
Diversification Opportunities for Avient Corp and HERSHEY
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Avient and HERSHEY is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and HERSHEY 72 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HERSHEY 72 percent 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 HERSHEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HERSHEY 72 percent has no effect on the direction of Avient Corp i.e., Avient Corp and HERSHEY go up and down completely randomly.
Pair Corralation between Avient Corp and HERSHEY
Given the investment horizon of 90 days Avient Corp is expected to under-perform the HERSHEY. But the stock apears to be less risky and, when comparing its historical volatility, Avient Corp is 2.32 times less risky than HERSHEY. The stock trades about -0.19 of its potential returns per unit of risk. The HERSHEY 72 percent is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 10,788 in HERSHEY 72 percent on September 12, 2024 and sell it today you would earn a total of 337.00 from holding HERSHEY 72 percent or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Avient Corp vs. HERSHEY 72 percent
Performance |
| Timeline |
| Avient Corp |
| HERSHEY 72 percent |
Avient Corp and HERSHEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and HERSHEY
The main advantage of trading using opposite Avient Corp and HERSHEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, HERSHEY 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 HERSHEY will offset losses from the drop in HERSHEY's long position.| Avient Corp vs. Griffon | Avient Corp vs. Merck Company | Avient Corp vs. Brinker International | Avient Corp vs. Alcoa Corp |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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