Correlation Between Atmos Energy and High Roller
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and High Roller 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 High Roller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and High Roller Technologies,, you can compare the effects of market volatilities on Atmos Energy and High Roller 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 High Roller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and High Roller.
Diversification Opportunities for Atmos Energy and High Roller
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atmos and High is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and High Roller Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Roller Technologies, 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 High Roller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Roller Technologies, has no effect on the direction of Atmos Energy i.e., Atmos Energy and High Roller go up and down completely randomly.
Pair Corralation between Atmos Energy and High Roller
Considering the 90-day investment horizon Atmos Energy is expected to under-perform the High Roller. But the stock apears to be less risky and, when comparing its historical volatility, Atmos Energy is 9.48 times less risky than High Roller. The stock trades about -0.19 of its potential returns per unit of risk. The High Roller Technologies, is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 600.00 in High Roller Technologies, on September 13, 2024 and sell it today you would earn a total of 30.00 from holding High Roller Technologies, or generate 5.0% 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. High Roller Technologies,
Performance |
| Timeline |
| Atmos Energy |
| High Roller Technologies, |
Atmos Energy and High Roller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and High Roller
The main advantage of trading using opposite Atmos Energy and High Roller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, High Roller 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 High Roller will offset losses from the drop in High Roller's long position.| Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
| High Roller vs. Grocery Outlet Holding | High Roller vs. National Vision Holdings | High Roller vs. Pool Corporation | High Roller vs. SunOpta |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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