Correlation Between Rumble and Atmos Energy

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

Diversification Opportunities for Rumble and Atmos Energy

0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between Rumble and Atmos is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc and Atmos Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atmos Energy and Rumble 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 Rumble Inc 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 Rumble i.e., Rumble and Atmos Energy go up and down completely randomly.

Pair Corralation between Rumble and Atmos Energy

Considering the 90-day investment horizon Rumble Inc is expected to under-perform the Atmos Energy. In addition to that, Rumble is 2.65 times more volatile than Atmos Energy. It trades about -0.41 of its total potential returns per unit of risk. Atmos Energy is currently generating about 0.29 per unit of volatility. If you would invest  10,332  in Atmos Energy on September 8, 2022 and sell it today you would earn a total of  1,412  from holding Atmos Energy or generate 13.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Rumble Inc  vs.  Atmos Energy

 Performance (%) 
       Timeline  
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 weak performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in January 2023. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Rumble Price Channel

Atmos Energy 
Atmos Performance
0 of 100
Over the last 90 days Atmos Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Atmos Energy is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Atmos Price Channel

Rumble and Atmos Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rumble and Atmos Energy

The main advantage of trading using opposite Rumble and Atmos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rumble 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.
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The idea behind Rumble Inc and Atmos Energy 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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