Correlation Between Ambev SA and ATMOS
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By analyzing existing cross correlation between Ambev SA ADR and ATMOS ENERGY P, you can compare the effects of market volatilities on Ambev SA and ATMOS 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 Ambev SA with a short position of ATMOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambev SA and ATMOS.
Diversification Opportunities for Ambev SA and ATMOS
Poor diversification
The 3 months correlation between Ambev and ATMOS is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ambev SA ADR and ATMOS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMOS ENERGY P and Ambev SA 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 Ambev SA ADR are associated (or correlated) with ATMOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMOS ENERGY P has no effect on the direction of Ambev SA i.e., Ambev SA and ATMOS go up and down completely randomly.
Pair Corralation between Ambev SA and ATMOS
Given the investment horizon of 90 days Ambev SA ADR is expected to under-perform the ATMOS. In addition to that, Ambev SA is 3.55 times more volatile than ATMOS ENERGY P. It trades about -0.02 of its total potential returns per unit of risk. ATMOS ENERGY P is currently generating about 0.0 per unit of volatility. If you would invest 9,399 in ATMOS ENERGY P on September 2, 2024 and sell it today you would lose (73.00) from holding ATMOS ENERGY P or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.41% |
| Values | Daily Returns |
Ambev SA ADR vs. ATMOS ENERGY P
Performance |
| Timeline |
| Ambev SA ADR |
| ATMOS ENERGY P |
Ambev SA and ATMOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambev SA and ATMOS
The main advantage of trading using opposite Ambev SA and ATMOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambev SA position performs unexpectedly, ATMOS 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 ATMOS will offset losses from the drop in ATMOS's long position.| Ambev SA vs. Compania Cervecerias Unidas | Ambev SA vs. Molson Coors Brewing | Ambev SA vs. Suntory Beverage Food | Ambev SA vs. Carlsberg AS |
| ATMOS vs. WT Offshore | ATMOS vs. Ambev SA ADR | ATMOS vs. Sable Offshore Corp | ATMOS vs. Anheuser Busch Inbev |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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