Correlation Between Atmos Energy and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and Valneva SE 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 Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Valneva SE ADR, you can compare the effects of market volatilities on Atmos Energy and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Valneva SE.
Diversification Opportunities for Atmos Energy and Valneva SE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atmos and Valneva is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of Atmos Energy i.e., Atmos Energy and Valneva SE go up and down completely randomly.
Pair Corralation between Atmos Energy and Valneva SE
Considering the 90-day investment horizon Atmos Energy is expected to generate 0.21 times more return on investment than Valneva SE. However, Atmos Energy is 4.77 times less risky than Valneva SE. It trades about -0.28 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.07 per unit of risk. If you would invest 14,939 in Atmos Energy on September 22, 2024 and sell it today you would lose (970.00) from holding Atmos Energy or give up 6.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atmos Energy vs. Valneva SE ADR
Performance |
| Timeline |
| Atmos Energy |
| Valneva SE ADR |
Atmos Energy and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and Valneva SE
The main advantage of trading using opposite Atmos Energy and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Atmos Energy vs. NiSource | Atmos Energy vs. Aquagold International | Atmos Energy vs. Thrivent High Yield | Atmos Energy vs. Morningstar Unconstrained Allocation |
| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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