Correlation Between Atmos Energy and Scottie Resources
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and Scottie Resources 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 Scottie Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Scottie Resources Corp, you can compare the effects of market volatilities on Atmos Energy and Scottie Resources 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Scottie Resources.
Diversification Opportunities for Atmos Energy and Scottie Resources
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atmos and Scottie is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of Atmos Energy i.e., Atmos Energy and Scottie Resources go up and down completely randomly.
Pair Corralation between Atmos Energy and Scottie Resources
Considering the 90-day investment horizon Atmos Energy is expected to generate 0.12 times more return on investment than Scottie Resources. However, Atmos Energy is 8.07 times less risky than Scottie Resources. It trades about 0.27 of its potential returns per unit of risk. Scottie Resources Corp is currently generating about 0.0 per unit of risk. If you would invest 13,109 in Atmos Energy on September 3, 2024 and sell it today you would earn a total of 2,023 from holding Atmos Energy or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atmos Energy vs. Scottie Resources Corp
Performance |
| Timeline |
| Atmos Energy |
| Scottie Resources Corp |
Atmos Energy and Scottie Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and Scottie Resources
The main advantage of trading using opposite Atmos Energy and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Scottie Resources 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 Scottie Resources will offset losses from the drop in Scottie Resources' long position.| Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
| Scottie Resources vs. Blackrock Silver Corp | Scottie Resources vs. AbraSilver Resource Corp | Scottie Resources vs. CMC Metals | Scottie Resources vs. Metallic Minerals Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |