Correlation Between Cngr Advanced and Avient Corp

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

By analyzing existing cross correlation between Cngr Advanced Material and Avient Corp, you can compare the effects of market volatilities on Cngr Advanced 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 Cngr Advanced with a short position of Avient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cngr Advanced and Avient Corp.

Diversification Opportunities for Cngr Advanced and Avient Corp

-0.63

Correlation Coefficient

Cngr Advanced  Avient Corp

Excellent diversification

The 3 months correlation between Cngr and Avient is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cngr Advanced Material and Avient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avient Corp and Cngr Advanced 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 Cngr Advanced Material 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 Cngr Advanced i.e., Cngr Advanced and Avient Corp go up and down completely randomly.

Pair Corralation between Cngr Advanced and Avient Corp

Assuming the 90 days trading horizon Cngr Advanced Material is expected to generate 1.82 times more return on investment than Avient Corp. However, Cngr Advanced is 1.82 times more volatile than Avient Corp. It trades about 0.05 of its potential returns per unit of risk. Avient Corp is currently generating about -0.13 per unit of risk. If you would invest  3,855  in Cngr Advanced Material on September 3, 2025 and sell it today you would earn a total of  304.00  from holding Cngr Advanced Material or generate 7.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	92.06%
Values	Daily Returns

Cngr Advanced Material  vs.  Avient Corp

Cngr Advanced Material

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cngr Advanced Material are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cngr Advanced may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Avient Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Avient Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cngr Advanced and Avient Corp

The main advantage of trading using opposite Cngr Advanced and Avient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cngr Advanced 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 Cngr Advanced Material 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.