Correlation Between Avient Corp and Uber Technologies

Can any of the company-specific risk be diversified away by investing in both Avient Corp and Uber Technologies 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 Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Avient Corp and Uber Technologies, you can compare the effects of market volatilities on Avient Corp and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avient Corp and Uber Technologies.

Diversification Opportunities for Avient Corp and Uber Technologies

0.14

Correlation Coefficient

Avient Corp  Uber Technologies

Average diversification

The 3 months correlation between Avient and Uber is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Avient Corp and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Avient Corp i.e., Avient Corp and Uber Technologies go up and down completely randomly.

Pair Corralation between Avient Corp and Uber Technologies

Given the investment horizon of 90 days Avient Corp is expected to under-perform the Uber Technologies. In addition to that, Avient Corp is 1.0 times more volatile than Uber Technologies. It trades about -0.08 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.12 per unit of volatility. If you would invest  6,729  in Uber Technologies on February 3, 2025 and sell it today you would earn a total of  1,699  from holding Uber Technologies or generate 25.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Avient Corp  vs.  Uber Technologies

Avient Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avient Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Uber Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Uber Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Avient Corp and Uber Technologies

The main advantage of trading using opposite Avient Corp and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avient Corp position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.

The idea behind Avient Corp and Uber Technologies 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.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.