Correlation Between Atmos Energy and Rumble

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

Diversification Opportunities for Atmos Energy and Rumble

0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Atmos and Rumble is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc 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 Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Atmos Energy i.e., Atmos Energy and Rumble go up and down completely randomly.

Pair Corralation between Atmos Energy and Rumble

Considering the 90-day investment horizon Atmos Energy is expected to generate 0.27 times more return on investment than Rumble. However, Atmos Energy is 3.76 times less risky than Rumble. It trades about 0.18 of its potential returns per unit of risk. Rumble Inc is currently generating about -0.04 per unit of risk. If you would invest  10,435  in Atmos Energy on September 2, 2022 and sell it today you would earn a total of  1,585  from holding Atmos Energy or generate 15.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Atmos Energy  vs.  Rumble Inc

 Performance (%) 
       Timeline  
Atmos Energy 
Atmos Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Atmos Energy are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Atmos Energy may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Atmos Price Channel

Rumble Inc 
Rumble Performance
0 of 100
Over the last 90 days Rumble Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Rumble is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Rumble Price Channel

Atmos Energy and Rumble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atmos Energy and Rumble

The main advantage of trading using opposite Atmos Energy and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, Rumble 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 Rumble will offset losses from the drop in Rumble's long position.
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The idea behind Atmos Energy and Rumble Inc 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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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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