Correlation Between Avient Corp and Hawkins

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Avient Corp and Hawkins at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Avient Corp and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avient Corp and Hawkins, you can compare the effects of market volatilities on Avient Corp and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and Hawkins.

Diversification Opportunities for Avient Corp and Hawkins

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Avient and Hawkins is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Avient Corp i.e., Avient Corp and Hawkins go up and down completely randomly.

Pair Corralation between Avient Corp and Hawkins

Given the investment horizon of 90 days Avient Corp is expected to under-perform the Hawkins. In addition to that, Avient Corp is 1.56 times more volatile than Hawkins. It trades about -0.52 of its total potential returns per unit of risk. Hawkins is currently generating about 0.01 per unit of volatility. If you would invest  3,832  in Hawkins on July 2, 2022 and sell it today you would lose (3.00)  from holding Hawkins or give up 0.08% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Avient Corp  vs.  Hawkins

 Performance (%) 
       Timeline  
Avient Corp 
Avient Performance
0 of 100
Over the last 90 days Avient Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Avient Price Channel

Hawkins 
Hawkins Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hawkins are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Hawkins may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Hawkins Price Channel

Avient Corp and Hawkins Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Avient Corp and Hawkins

The main advantage of trading using opposite Avient Corp and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.
Avient Corp vs. Amazon Inc
The idea behind Avient Corp and Hawkins 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.
Hawkins vs. Amazon Inc
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go