Correlation Between Atmos Energy and One Gas
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and One Gas 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 One Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and One Gas, you can compare the effects of market volatilities on Atmos Energy and One Gas 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 One Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and One Gas.
Diversification Opportunities for Atmos Energy and One Gas
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Atmos and One is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas 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 One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of Atmos Energy i.e., Atmos Energy and One Gas go up and down completely randomly.
Pair Corralation between Atmos Energy and One Gas
Considering the 90-day investment horizon Atmos Energy is expected to generate 0.79 times more return on investment than One Gas. However, Atmos Energy is 1.27 times less risky than One Gas. It trades about 0.08 of its potential returns per unit of risk. One Gas is currently generating about 0.02 per unit of risk. If you would invest 13,109 in Atmos Energy on November 2, 2024 and sell it today you would earn a total of 1,162 from holding Atmos Energy or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atmos Energy vs. One Gas
Performance |
| Timeline |
| Atmos Energy |
| One Gas |
Atmos Energy and One Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and One Gas
The main advantage of trading using opposite Atmos Energy and One Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, One Gas 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 One Gas will offset losses from the drop in One Gas' long position.| Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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