Correlation Between Avient Corp and NUCOR
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By analyzing existing cross correlation between Avient Corp and NUCOR P 395, you can compare the effects of market volatilities on Avient Corp and NUCOR 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 NUCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and NUCOR.
Diversification Opportunities for Avient Corp and NUCOR
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avient and NUCOR is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and NUCOR P 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUCOR P 5 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 NUCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUCOR P 5 has no effect on the direction of Avient Corp i.e., Avient Corp and NUCOR go up and down completely randomly.
Pair Corralation between Avient Corp and NUCOR
Given the investment horizon of 90 days Avient Corp is expected to generate 4.34 times more return on investment than NUCOR. However, Avient Corp is 4.34 times more volatile than NUCOR P 395. It trades about 0.25 of its potential returns per unit of risk. NUCOR P 395 is currently generating about 0.02 per unit of risk. If you would invest 4,667 in Avient Corp on September 5, 2024 and sell it today you would earn a total of 467.00 from holding Avient Corp or generate 10.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avient Corp vs. NUCOR P 395
Performance |
| Timeline |
| Avient Corp |
| NUCOR P 5 |
Avient Corp and NUCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avient Corp and NUCOR
The main advantage of trading using opposite Avient Corp and NUCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, NUCOR 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 NUCOR will offset losses from the drop in NUCOR's long position.| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
| NUCOR vs. Avient Corp | NUCOR vs. Mitsubishi UFJ Lease | NUCOR vs. Luxfer Holdings PLC | NUCOR vs. Alta Equipment Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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