Correlation Between Ranger Energy and Atlas Energy
Can any of the company-specific risk be diversified away by investing in both Ranger Energy and Atlas 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 Ranger Energy and Atlas Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ranger Energy Services and Atlas Energy Solutions, you can compare the effects of market volatilities on Ranger Energy and Atlas 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 Ranger Energy with a short position of Atlas Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ranger Energy and Atlas Energy.
Diversification Opportunities for Ranger Energy and Atlas Energy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ranger and Atlas is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ranger Energy Services and Atlas Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Energy Solutions and Ranger 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 Ranger Energy Services are associated (or correlated) with Atlas Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Energy Solutions has no effect on the direction of Ranger Energy i.e., Ranger Energy and Atlas Energy go up and down completely randomly.
Pair Corralation between Ranger Energy and Atlas Energy
Given the investment horizon of 90 days Ranger Energy Services is expected to generate 0.76 times more return on investment than Atlas Energy. However, Ranger Energy Services is 1.32 times less risky than Atlas Energy. It trades about -0.08 of its potential returns per unit of risk. Atlas Energy Solutions is currently generating about -0.35 per unit of risk. If you would invest 1,642 in Ranger Energy Services on December 4, 2024 and sell it today you would lose (64.00) from holding Ranger Energy Services or give up 3.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ranger Energy Services vs. Atlas Energy Solutions
Performance |
Timeline |
Ranger Energy Services |
Atlas Energy Solutions |
Ranger Energy and Atlas Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ranger Energy and Atlas Energy
The main advantage of trading using opposite Ranger Energy and Atlas Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ranger Energy position performs unexpectedly, Atlas 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 Atlas Energy will offset losses from the drop in Atlas Energy's long position.Ranger Energy vs. ProPetro Holding Corp | Ranger Energy vs. RPC Inc | Ranger Energy vs. MRC Global | Ranger Energy vs. Oil States International |
Atlas Energy vs. ProPetro Holding Corp | Atlas Energy vs. Ranger Energy Services | Atlas Energy vs. Flotek Industries | Atlas Energy vs. Liberty Oilfield Services |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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