Correlation Between Avon Products and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both Avon Products and Corning Incorporated 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 Avon Products and Corning Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avon Products and Corning Incorporated, you can compare the effects of market volatilities on Avon Products and Corning Incorporated 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 Avon Products with a short position of Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avon Products and Corning Incorporated.
Diversification Opportunities for Avon Products and Corning Incorporated
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avon and Corning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Avon Products and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated and Avon Products 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 Avon Products are associated (or correlated) with Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of Avon Products i.e., Avon Products and Corning Incorporated go up and down completely randomly.
Pair Corralation between Avon Products and Corning Incorporated
If you would invest (100.00) in Avon Products on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Avon Products or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Avon Products vs. Corning Incorporated
Performance |
| Timeline |
| Avon Products |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Corning Incorporated |
Avon Products and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avon Products and Corning Incorporated
The main advantage of trading using opposite Avon Products and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avon Products position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| Avon Products vs. Sensient Technologies | Avon Products vs. Kura Sushi USA | Avon Products vs. CF Industries Holdings | Avon Products vs. The Mosaic |
| Corning Incorporated vs. Maximus | Corning Incorporated vs. Network 1 Technologies | Corning Incorporated vs. First Advantage Corp | Corning Incorporated vs. BrightView Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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