Correlation Between Atmos Energy and Gfl Environmental

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and Gfl Environmental 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 Gfl Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and Gfl Environmental Holdings, you can compare the effects of market volatilities on Atmos Energy and Gfl Environmental 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 Gfl Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and Gfl Environmental.

Diversification Opportunities for Atmos Energy and Gfl Environmental

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Atmos and Gfl is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Gfl Environmental Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gfl Environmental 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 Gfl Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gfl Environmental has no effect on the direction of Atmos Energy i.e., Atmos Energy and Gfl Environmental go up and down completely randomly.

Pair Corralation between Atmos Energy and Gfl Environmental

Considering the 90-day investment horizon Atmos Energy is expected to generate 9.67 times less return on investment than Gfl Environmental. But when comparing it to its historical volatility, Atmos Energy is 1.26 times less risky than Gfl Environmental. It trades about 0.0 of its potential returns per unit of risk. Gfl Environmental Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,102  in Gfl Environmental Holdings on October 24, 2024 and sell it today you would earn a total of  92.00  from holding Gfl Environmental Holdings or generate 2.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Atmos Energy  vs.  Gfl Environmental Holdings

 Performance 
       Timeline  
Atmos Energy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Atmos Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Atmos Energy is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
Gfl Environmental 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Gfl Environmental Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Gfl Environmental is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Atmos Energy and Gfl Environmental Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atmos Energy and Gfl Environmental

The main advantage of trading using opposite Atmos Energy and Gfl Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Gfl Environmental 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 Gfl Environmental will offset losses from the drop in Gfl Environmental's long position.
The idea behind Atmos Energy and Gfl Environmental Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Money Managers
Screen money managers from public funds and ETFs managed around the world
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges