Correlation Between Atmos Energy and Vince Holding

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Can any of the company-specific risk be diversified away by investing in both Atmos Energy and Vince Holding 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 Vince Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Vince Holding Corp, you can compare the effects of market volatilities on Atmos Energy and Vince Holding 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 Vince Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Vince Holding.

Diversification Opportunities for Atmos Energy and Vince Holding

-0.13
  Correlation Coefficient

Good diversification

The 3 months correlation between Atmos and Vince is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Vince Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vince Holding 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 Vince Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vince Holding Corp has no effect on the direction of Atmos Energy i.e., Atmos Energy and Vince Holding go up and down completely randomly.

Pair Corralation between Atmos Energy and Vince Holding

Considering the 90-day investment horizon Atmos Energy is expected to generate 0.28 times more return on investment than Vince Holding. However, Atmos Energy is 3.61 times less risky than Vince Holding. It trades about 0.33 of its potential returns per unit of risk. Vince Holding Corp is currently generating about -0.09 per unit of risk. If you would invest  14,067  in Atmos Energy on August 29, 2024 and sell it today you would earn a total of  966.00  from holding Atmos Energy or generate 6.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Atmos Energy  vs.  Vince Holding Corp

 Performance 
       Timeline  
Atmos Energy 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Atmos Energy are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Atmos Energy displayed solid returns over the last few months and may actually be approaching a breakup point.
Vince Holding Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Vince Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Vince Holding is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Atmos Energy and Vince Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atmos Energy and Vince Holding

The main advantage of trading using opposite Atmos Energy and Vince Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Vince Holding 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 Vince Holding will offset losses from the drop in Vince Holding's long position.
The idea behind Atmos Energy and Vince Holding Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Transaction History module to view history of all your transactions and understand their impact on performance.

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