Correlation Between Atlas Corp and Southern
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Southern 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 Atlas Corp and Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Southern Co, you can compare the effects of market volatilities on Atlas Corp and Southern 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 Atlas Corp with a short position of Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Southern.
Diversification Opportunities for Atlas Corp and Southern
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlas and Southern is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Southern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern and Atlas 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 Atlas Corp are associated (or correlated) with Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern has no effect on the direction of Atlas Corp i.e., Atlas Corp and Southern go up and down completely randomly.
Pair Corralation between Atlas Corp and Southern
Assuming the 90 days horizon Atlas Corp is expected to generate 0.7 times more return on investment than Southern. However, Atlas Corp is 1.43 times less risky than Southern. It trades about 0.11 of its potential returns per unit of risk. Southern Co is currently generating about 0.04 per unit of risk. If you would invest 2,202 in Atlas Corp on August 24, 2024 and sell it today you would earn a total of 303.00 from holding Atlas Corp or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. Southern Co
Performance |
| Timeline |
| Atlas Corp |
| Southern |
Atlas Corp and Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Southern
The main advantage of trading using opposite Atlas Corp and Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Southern 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 Southern will offset losses from the drop in Southern's long position.| Atlas Corp vs. Harrow Health 8625 | Atlas Corp vs. Babcock Wilcox Enterprises, | Atlas Corp vs. B Riley Financial | Atlas Corp vs. Oxford Lane Capital |
| Southern vs. Atmos Energy | Southern vs. Emerson Radio | Southern vs. Antero Midstream Partners | Southern vs. Playtech plc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world |