Correlation Between Atmos Energy and Sphere Entertainment
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and Sphere Entertainment 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 Sphere Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Sphere Entertainment Co, you can compare the effects of market volatilities on Atmos Energy and Sphere Entertainment 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 Sphere Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Sphere Entertainment.
Diversification Opportunities for Atmos Energy and Sphere Entertainment
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atmos and Sphere is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Sphere Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sphere Entertainment 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 Sphere Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sphere Entertainment has no effect on the direction of Atmos Energy i.e., Atmos Energy and Sphere Entertainment go up and down completely randomly.
Pair Corralation between Atmos Energy and Sphere Entertainment
Considering the 90-day investment horizon Atmos Energy is expected to generate 0.4 times more return on investment than Sphere Entertainment. However, Atmos Energy is 2.52 times less risky than Sphere Entertainment. It trades about 0.45 of its potential returns per unit of risk. Sphere Entertainment Co is currently generating about -0.1 per unit of risk. If you would invest 13,881 in Atmos Energy on August 31, 2024 and sell it today you would earn a total of 1,262 from holding Atmos Energy or generate 9.09% 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. Sphere Entertainment Co
Performance |
| Timeline |
| Atmos Energy |
| Sphere Entertainment |
Atmos Energy and Sphere Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and Sphere Entertainment
The main advantage of trading using opposite Atmos Energy and Sphere Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Sphere Entertainment 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 Sphere Entertainment will offset losses from the drop in Sphere Entertainment's long position.| Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
| Sphere Entertainment vs. Ihuman Inc | Sphere Entertainment vs. GoHealth | Sphere Entertainment vs. Aspen Insurance Holdings | Sphere Entertainment vs. Relx PLC ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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