Correlation Between Itron and Avnet
Can any of the company-specific risk be diversified away by investing in both Itron and Avnet 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 Itron and Avnet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itron Inc and Avnet Inc, you can compare the effects of market volatilities on Itron and Avnet 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 Itron with a short position of Avnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itron and Avnet.
Diversification Opportunities for Itron and Avnet
Very poor diversification
The 3 months correlation between Itron and Avnet is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Itron Inc and Avnet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avnet Inc and Itron 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 Itron Inc are associated (or correlated) with Avnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avnet Inc has no effect on the direction of Itron i.e., Itron and Avnet go up and down completely randomly.
Pair Corralation between Itron and Avnet
Given the investment horizon of 90 days Itron Inc is expected to under-perform the Avnet. In addition to that, Itron is 1.67 times more volatile than Avnet Inc. It trades about -0.04 of its total potential returns per unit of risk. Avnet Inc is currently generating about -0.02 per unit of volatility. If you would invest 5,029 in Avnet Inc on September 2, 2025 and sell it today you would lose (282.00) from holding Avnet Inc or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Itron Inc vs. Avnet Inc
Performance |
| Timeline |
| Itron Inc |
| Avnet Inc |
Itron and Avnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itron and Avnet
The main advantage of trading using opposite Itron and Avnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itron position performs unexpectedly, Avnet 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 Avnet will offset losses from the drop in Avnet's long position.| Itron vs. Willis Lease Finance | Itron vs. SportsHero Limited | Itron vs. First Ship Lease | Itron vs. Loans4LessCom |
| Avnet vs. XLMedia PLC | Avnet vs. Live Nation Entertainment | Avnet vs. Gladstone Investment | Avnet vs. AG Mortgage 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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