Correlation Between Atmos Energy and Companhia Energetica
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and Companhia Energetica 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 Atmos Energy and Companhia Energetica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Companhia Energetica de, you can compare the effects of market volatilities on Atmos Energy and Companhia Energetica 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 Atmos Energy with a short position of Companhia Energetica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Companhia Energetica.
Diversification Opportunities for Atmos Energy and Companhia Energetica
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atmos and Companhia is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Companhia Energetica de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Companhia Energetica and Atmos Energy 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 Atmos Energy are associated (or correlated) with Companhia Energetica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Companhia Energetica has no effect on the direction of Atmos Energy i.e., Atmos Energy and Companhia Energetica go up and down completely randomly.
Pair Corralation between Atmos Energy and Companhia Energetica
Considering the 90-day investment horizon Atmos Energy is expected to generate 0.38 times more return on investment than Companhia Energetica. However, Atmos Energy is 2.63 times less risky than Companhia Energetica. It trades about 0.4 of its potential returns per unit of risk. Companhia Energetica de is currently generating about 0.11 per unit of risk. If you would invest 13,964 in Atmos Energy on August 30, 2024 and sell it today you would earn a total of 1,179 from holding Atmos Energy or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atmos Energy vs. Companhia Energetica de
Performance |
| Timeline |
| Atmos Energy |
| Companhia Energetica |
Atmos Energy and Companhia Energetica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and Companhia Energetica
The main advantage of trading using opposite Atmos Energy and Companhia Energetica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Companhia Energetica 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 Companhia Energetica will offset losses from the drop in Companhia Energetica's long position.| Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
| Companhia Energetica vs. NorthWestern | Companhia Energetica vs. Montauk Renewables | Companhia Energetica vs. Allete Inc | Companhia Energetica vs. Companhia Paranaense de |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |