Correlation Between Atmos Energy and SOCGEN

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

By analyzing existing cross correlation between Atmos Energy and SOCGEN 6221 15 JUN 33, you can compare the effects of market volatilities on Atmos Energy and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and SOCGEN.

Diversification Opportunities for Atmos Energy and SOCGEN

0.0

Correlation Coefficient

Atmos Energy  SOCGEN

Pay attention - limited upside

The 3 months correlation between Atmos and SOCGEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and SOCGEN 6221 15 JUN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 6221 15 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 6221 15 has no effect on the direction of Atmos Energy i.e., Atmos Energy and SOCGEN go up and down completely randomly.

Pair Corralation between Atmos Energy and SOCGEN

If you would invest  13,066  in Atmos Energy on September 5, 2024 and sell it today you would earn a total of  1,537  from holding Atmos Energy or generate 11.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Atmos Energy  vs.  SOCGEN 6221 15 JUN 33

Atmos Energy

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atmos Energy are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Atmos Energy may actually be approaching a critical reversion point that can send shares even higher in January 2025.

SOCGEN 6221 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SOCGEN 6221 15 JUN 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SOCGEN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Atmos Energy and SOCGEN

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

The idea behind Atmos Energy and SOCGEN 6221 15 JUN 33 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.