Correlation Between Atmos Energy and Spyre Therapeutics

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

Diversification Opportunities for Atmos Energy and Spyre Therapeutics

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Atmos and Spyre is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre Therapeutics 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 Spyre Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spyre Therapeutics has no effect on the direction of Atmos Energy i.e., Atmos Energy and Spyre Therapeutics go up and down completely randomly.

Pair Corralation between Atmos Energy and Spyre Therapeutics

Considering the 90-day investment horizon Atmos Energy is expected to generate 0.24 times more return on investment than Spyre Therapeutics. However, Atmos Energy is 4.24 times less risky than Spyre Therapeutics. It trades about 0.1 of its potential returns per unit of risk. Spyre Therapeutics is currently generating about -0.01 per unit of risk. If you would invest  13,399  in Atmos Energy on September 12, 2024 and sell it today you would earn a total of  712.00  from holding Atmos Energy or generate 5.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Atmos Energy  vs.  Spyre Therapeutics

 Performance 
       Timeline  
Atmos Energy 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Atmos Energy are ranked lower than 7 (%) 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.
Spyre Therapeutics 

Risk-Adjusted Performance

0 of 100

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

Atmos Energy and Spyre Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atmos Energy and Spyre Therapeutics

The main advantage of trading using opposite Atmos Energy and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Spyre Therapeutics 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 Spyre Therapeutics will offset losses from the drop in Spyre Therapeutics' long position.
The idea behind Atmos Energy and Spyre Therapeutics 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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