Correlation Between Atmos Energy and AMCON Distributing
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and AMCON Distributing 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 AMCON Distributing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and AMCON Distributing, you can compare the effects of market volatilities on Atmos Energy and AMCON Distributing 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 AMCON Distributing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and AMCON Distributing.
Diversification Opportunities for Atmos Energy and AMCON Distributing
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atmos and AMCON is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing 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 AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of Atmos Energy i.e., Atmos Energy and AMCON Distributing go up and down completely randomly.
Pair Corralation between Atmos Energy and AMCON Distributing
Considering the 90-day investment horizon Atmos Energy is expected to generate 0.3 times more return on investment than AMCON Distributing. However, Atmos Energy is 3.39 times less risky than AMCON Distributing. It trades about 0.11 of its potential returns per unit of risk. AMCON Distributing is currently generating about -0.01 per unit of risk. If you would invest 10,922 in Atmos Energy on September 14, 2024 and sell it today you would earn a total of 3,136 from holding Atmos Energy or generate 28.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
Atmos Energy vs. AMCON Distributing
Performance |
| Timeline |
| Atmos Energy |
| AMCON Distributing |
Atmos Energy and AMCON Distributing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and AMCON Distributing
The main advantage of trading using opposite Atmos Energy and AMCON Distributing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, AMCON Distributing 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 AMCON Distributing will offset losses from the drop in AMCON Distributing's long position.| Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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