Correlation Between Natural Gas and Atlas For

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

By analyzing existing cross correlation between Natural Gas Mining and Atlas For Investment, you can compare the effects of market volatilities on Natural Gas and Atlas For 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 Natural Gas with a short position of Atlas For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Gas and Atlas For.

Diversification Opportunities for Natural Gas and Atlas For

-0.04

Correlation Coefficient

Natural Gas  Atlas For

Good diversification

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

Pair Corralation between Natural Gas and Atlas For

Assuming the 90 days trading horizon Natural Gas Mining is expected to under-perform the Atlas For. But the stock apears to be less risky and, when comparing its historical volatility, Natural Gas Mining is 1.72 times less risky than Atlas For. The stock trades about -0.01 of its potential returns per unit of risk. The Atlas For Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  105.00  in Atlas For Investment on October 8, 2024 and sell it today you would earn a total of  7.00  from holding Atlas For Investment or generate 6.67% return on investment over 90 days.

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

Natural Gas Mining  vs.  Atlas For Investment

Natural Gas Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Natural Gas Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Atlas For Investment

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas For Investment are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Atlas For reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Natural Gas and Atlas For

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

The idea behind Natural Gas Mining and Atlas For Investment 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.