Correlation Between Atmos Energy and MFA Financial
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and MFA Financial 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 MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and MFA Financial SR, you can compare the effects of market volatilities on Atmos Energy and MFA Financial 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 MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and MFA Financial.
Diversification Opportunities for Atmos Energy and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atmos and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and MFA Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial SR 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 MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial SR has no effect on the direction of Atmos Energy i.e., Atmos Energy and MFA Financial go up and down completely randomly.
Pair Corralation between Atmos Energy and MFA Financial
If you would invest 10,864 in Atmos Energy on September 19, 2024 and sell it today you would earn a total of 2,777 from holding Atmos Energy or generate 25.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Atmos Energy vs. MFA Financial SR
Performance |
| Timeline |
| Atmos Energy |
| MFA Financial SR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atmos Energy and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and MFA Financial
The main advantage of trading using opposite Atmos Energy and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, MFA Financial 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 MFA Financial will offset losses from the drop in MFA Financial's long position.| Atmos Energy vs. NiSource | Atmos Energy vs. Aquagold International | Atmos Energy vs. Thrivent High Yield | Atmos Energy vs. Morningstar Unconstrained Allocation |
| MFA Financial vs. Merit Medical Systems | MFA Financial vs. Atmos Energy | MFA Financial vs. Empresa Distribuidora y | MFA Financial vs. Neogen |
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.
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