Correlation Between Kenon Holdings and Atmos Energy
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings and Atmos Energy 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 Kenon Holdings and Atmos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and Atmos Energy, you can compare the effects of market volatilities on Kenon Holdings and Atmos Energy 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 Kenon Holdings with a short position of Atmos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Atmos Energy.
Diversification Opportunities for Kenon Holdings and Atmos Energy
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kenon and Atmos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and Atmos Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atmos Energy and Kenon Holdings 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 Kenon Holdings are associated (or correlated) with Atmos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atmos Energy has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and Atmos Energy go up and down completely randomly.
Pair Corralation between Kenon Holdings and Atmos Energy
Considering the 90-day investment horizon Kenon Holdings is expected to generate 1.84 times more return on investment than Atmos Energy. However, Kenon Holdings is 1.84 times more volatile than Atmos Energy. It trades about 0.15 of its potential returns per unit of risk. Atmos Energy is currently generating about 0.16 per unit of risk. If you would invest 2,941 in Kenon Holdings on December 18, 2024 and sell it today you would earn a total of 584.00 from holding Kenon Holdings or generate 19.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kenon Holdings vs. Atmos Energy
Performance |
Timeline |
Kenon Holdings |
Atmos Energy |
Kenon Holdings and Atmos Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kenon Holdings and Atmos Energy
The main advantage of trading using opposite Kenon Holdings and Atmos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, Atmos Energy 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 Atmos Energy will offset losses from the drop in Atmos Energy's long position.Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
Atmos Energy vs. NewJersey Resources | Atmos Energy vs. One Gas | Atmos Energy vs. Northwest Natural Gas | Atmos Energy vs. Chesapeake Utilities |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |