Correlation Between SOCGEN and Avient Corp
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By analyzing existing cross correlation between SOCGEN 7367 10 JAN 53 and Avient Corp, you can compare the effects of market volatilities on SOCGEN 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 SOCGEN with a short position of Avient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOCGEN and Avient Corp.
Diversification Opportunities for SOCGEN and Avient Corp
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOCGEN and Avient is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SOCGEN 7367 10 JAN 53 and Avient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avient Corp and SOCGEN 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 SOCGEN 7367 10 JAN 53 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 SOCGEN i.e., SOCGEN and Avient Corp go up and down completely randomly.
Pair Corralation between SOCGEN and Avient Corp
Assuming the 90 days trading horizon SOCGEN 7367 10 JAN 53 is expected to under-perform the Avient Corp. In addition to that, SOCGEN is 1.34 times more volatile than Avient Corp. It trades about -0.21 of its total potential returns per unit of risk. Avient Corp is currently generating about 0.25 per unit of volatility. If you would invest 4,667 in Avient Corp on September 4, 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 | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
SOCGEN 7367 10 JAN 53 vs. Avient Corp
Performance |
| Timeline |
| SOCGEN 7367 10 |
| Avient Corp |
SOCGEN and Avient Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOCGEN and Avient Corp
The main advantage of trading using opposite SOCGEN and Avient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOCGEN 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.| SOCGEN vs. Avient Corp | SOCGEN vs. WEC Energy Group | SOCGEN vs. Summit Materials | SOCGEN vs. Consol Energy |
| Avient Corp vs. Axalta Coating Systems | Avient Corp vs. H B Fuller | Avient Corp vs. Quaker Chemical | Avient Corp vs. Cabot |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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