Correlation Between CTS and ATMOS
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By analyzing existing cross correlation between CTS Corporation and ATMOS ENERGY P, you can compare the effects of market volatilities on CTS and ATMOS 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 CTS with a short position of ATMOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTS and ATMOS.
Diversification Opportunities for CTS and ATMOS
Average diversification
The 3 months correlation between CTS and ATMOS is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CTS Corp. and ATMOS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMOS ENERGY P and CTS 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 CTS Corporation are associated (or correlated) with ATMOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMOS ENERGY P has no effect on the direction of CTS i.e., CTS and ATMOS go up and down completely randomly.
Pair Corralation between CTS and ATMOS
Considering the 90-day investment horizon CTS is expected to generate 1.39 times less return on investment than ATMOS. In addition to that, CTS is 1.59 times more volatile than ATMOS ENERGY P. It trades about 0.15 of its total potential returns per unit of risk. ATMOS ENERGY P is currently generating about 0.32 per unit of volatility. If you would invest 8,467 in ATMOS ENERGY P on September 15, 2024 and sell it today you would earn a total of 360.00 from holding ATMOS ENERGY P or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
CTS Corp. vs. ATMOS ENERGY P
Performance |
| Timeline |
| CTS Corporation |
| ATMOS ENERGY P |
CTS and ATMOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTS and ATMOS
The main advantage of trading using opposite CTS and ATMOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTS position performs unexpectedly, ATMOS 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 ATMOS will offset losses from the drop in ATMOS's long position.The idea behind CTS Corporation and ATMOS ENERGY P 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.| ATMOS vs. Aegon NV ADR | ATMOS vs. CapitaLand Investment Limited | ATMOS vs. NetEase | ATMOS vs. CTS Corporation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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