Correlation Between Atmos Energy and ReWalk Robotics

Can any of the company-specific risk be diversified away by investing in both Atmos Energy and ReWalk Robotics 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 ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atmos Energy and ReWalk Robotics, you can compare the effects of market volatilities on Atmos Energy and ReWalk Robotics 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 ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and ReWalk Robotics.

Diversification Opportunities for Atmos Energy and ReWalk Robotics

0.07

Correlation Coefficient

Atmos Energy  ReWalk Robotics

Significant diversification

The 3 months correlation between Atmos and ReWalk is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics 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 ReWalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReWalk Robotics has no effect on the direction of Atmos Energy i.e., Atmos Energy and ReWalk Robotics go up and down completely randomly.

Pair Corralation between Atmos Energy and ReWalk Robotics

Considering the 90-day investment horizon Atmos Energy is expected to generate 0.2 times more return on investment than ReWalk Robotics. However, Atmos Energy is 5.11 times less risky than ReWalk Robotics. It trades about 0.08 of its potential returns per unit of risk. ReWalk Robotics is currently generating about -0.01 per unit of risk. If you would invest  10,494  in Atmos Energy on December 2, 2024 and sell it today you would earn a total of  4,719  from holding Atmos Energy or generate 44.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Atmos Energy  vs.  ReWalk Robotics

Atmos Energy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atmos Energy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. 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.

ReWalk Robotics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ReWalk Robotics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ReWalk Robotics may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Atmos Energy and ReWalk Robotics

The main advantage of trading using opposite Atmos Energy and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, ReWalk Robotics 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 ReWalk Robotics will offset losses from the drop in ReWalk Robotics' long position.

The idea behind Atmos Energy and ReWalk Robotics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.