Correlation Between COMCAST and Avient Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between COMCAST PORATION and Avient Corp, you can compare the effects of market volatilities on COMCAST and Avient Corp 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 COMCAST with a short position of Avient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMCAST and Avient Corp.
Diversification Opportunities for COMCAST and Avient Corp
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COMCAST and Avient is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding COMCAST PORATION and Avient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avient Corp and COMCAST 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 COMCAST PORATION are associated (or correlated) with Avient Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avient Corp has no effect on the direction of COMCAST i.e., COMCAST and Avient Corp go up and down completely randomly.
Pair Corralation between COMCAST and Avient Corp
Assuming the 90 days trading horizon COMCAST is expected to generate 11.81 times less return on investment than Avient Corp. But when comparing it to its historical volatility, COMCAST PORATION is 1.42 times less risky than Avient Corp. It trades about 0.01 of its potential returns per unit of risk. Avient Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,234 in Avient Corp on September 14, 2024 and sell it today you would earn a total of 1,598 from holding Avient Corp or generate 49.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.96% |
| Values | Daily Returns |
COMCAST PORATION vs. Avient Corp
Performance |
| Timeline |
| COMCAST PORATION |
| Avient Corp |
COMCAST and Avient Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMCAST and Avient Corp
The main advantage of trading using opposite COMCAST and Avient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMCAST position performs unexpectedly, Avient Corp 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 Avient Corp will offset losses from the drop in Avient Corp's long position.The idea behind COMCAST PORATION and Avient Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Avient Corp vs. LyondellBasell Industries NV | Avient Corp vs. Cabot | Avient Corp vs. Westlake Chemical | Avient Corp vs. Air Products 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |