Atmos Stock Volatility

ATO
 Stock
  

USD 114.60  0.71  0.62%   

We consider Atmos Energy very steady. Atmos Energy Corp secures Sharpe Ratio (or Efficiency) of 0.0287, which signifies that the company had 0.0287% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Atmos Energy Corp, which you can use to evaluate the future volatility of the firm. Please confirm Atmos Energy Corp Risk Adjusted Performance of 0.0353, downside deviation of 1.53, and Mean Deviation of 1.05 to double-check if the risk estimate we provide is consistent with the expected return of 0.0404%.
  
Atmos Energy Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Atmos daily returns, and it is calculated using variance and standard deviation. We also use Atmos's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Atmos Energy volatility.

30 Days Market Risk

Very steady

Chance of Distress

Close to Average

30 Days Economic Sensitivity

Follows the market closely

ESG Sustainability

While most ESG disclosures are voluntary, Atmos Energy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Atmos Energy's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Atmos Energy can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Atmos Energy at lower prices. For example, an investor can purchase Atmos stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Atmos Energy's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Atmos Energy

0.89CNPCenterpoint EnergyPairCorr
0.93CPKChesapeake Utilities CorpPairCorr
0.79AEEAmeren CorpPairCorr
0.75AEPAmerican Electric PowerPairCorr

Atmos Energy Market Sensitivity And Downside Risk

Atmos Energy's beta coefficient measures the volatility of Atmos stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Atmos stock's returns against your selected market. In other words, Atmos Energy's beta of 0.63 provides an investor with an approximation of how much risk Atmos Energy stock can potentially add to one of your existing portfolios.
Atmos Energy Corp has relatively low volatility with skewness of -0.6 and kurtosis of 1.29. However, we advise all investors to independently investigate Atmos Energy Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Atmos Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Atmos Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Atmos Energy Implied Volatility

Atmos Energy's implied volatility exposes the market's sentiment of Atmos Energy Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Atmos Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Atmos Energy stock will not fluctuate a lot when Atmos Energy's options are near their expiration.
3 Months Beta |Analyze Atmos Energy Corp Demand Trend
Check current 90 days Atmos Energy correlation with market (DOW)

Atmos Beta

    
  0.63  
Atmos standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.41  
It is essential to understand the difference between upside risk (as represented by Atmos Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Atmos Energy stock's daily returns or price. Since the actual investment returns on holding a position in Atmos Energy stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Atmos Energy.

Using Atmos Put Option to Manage Risk

Put options written on Atmos Energy grant holders of the option the right to sell a specified amount of Atmos Energy at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Atmos Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Atmos Energy's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Atmos Energy will be realized, the loss incurred will be offset by the profits made with the option trade.

Atmos Energy's PUT expiring on 2022-08-19

   Profit   
Share
       Atmos Energy Price At Expiration  

Current Atmos Energy Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $110.0-0.32420.037572022-08-190.0 - 4.22.25View
Put
2022-08-19 PUT at $115.0-0.56680.069122022-08-190.85 - 4.92.0View
Put
2022-08-19 PUT at $120.0-0.80580.041232022-08-195.5 - 9.26.8View
View All Atmos Energy Options

Atmos Energy Corp Stock Volatility Analysis

Volatility refers to the frequency at which Atmos Energy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Atmos Energy's price changes. Investors will then calculate the volatility of Atmos Energy's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Atmos Energy's volatility:

Historical Volatility

This type of stock volatility measures Atmos Energy's fluctuations based on previous trends. It's commonly used to predict Atmos Energy's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Atmos Energy's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of Atmos Energy Corp price series.
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Atmos Energy Projected Return Density Against Market

Considering the 90-day investment horizon Atmos Energy has a beta of 0.6324 . This suggests as returns on the market go up, Atmos Energy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Atmos Energy Corp will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Atmos Energy or Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Atmos Energy stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Atmos stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.0363, implying that it can generate a 0.0363 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Atmos Energy's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Atmos Energy stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Atmos Energy Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Atmos Energy or Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Atmos Energy stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Atmos stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Considering the 90-day investment horizon the coefficient of variation of Atmos Energy is 3478.94. The daily returns are distributed with a variance of 1.98 and standard deviation of 1.41. The mean deviation of Atmos Energy Corp is currently at 1.04. For similar time horizon, the selected benchmark (DOW) has volatility of 1.36
α
Alpha over DOW
0.0363
β
Beta against DOW0.63
σ
Overall volatility
1.41
Ir
Information ratio 0.0299

Atmos Energy Stock Return Volatility

Atmos Energy historical daily return volatility represents how much Atmos Energy stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company has volatility of 1.4061% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.2565% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Atmos Energy Volatility

Volatility is a rate at which the price of Atmos Energy or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Atmos Energy may increase or decrease. In other words, similar to Atmos's beta indicator, it measures the risk of Atmos Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Atmos Energy fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2022
Market Capitalization13.3 B11.4 B
Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas. Atmos Energy operates under UtilitiesRegulated Gas classification in the United States and is traded on New York Stock Exchange. It employs 4684 people.

Atmos Energy Investment Opportunity

Atmos Energy Corp has a volatility of 1.41 and is 1.12 times more volatile than DOW. 12  of all equities and portfolios are less risky than Atmos Energy. Compared to the overall equity markets, volatility of historical daily returns of Atmos Energy Corp is lower than 12 () of all global equities and portfolios over the last 90 days.
Use Atmos Energy Corp to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a moderate upward volatility. Check odds of Atmos Energy to be traded at $126.06 in 90 days. .

Poor diversification

The correlation between Atmos Energy Corp and DJI is Poor diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy Corp and DJI in the same portfolio, assuming nothing else is changed.

Atmos Energy Additional Risk Indicators

The analysis of Atmos Energy's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Atmos Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Atmos Energy stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.0353
Market Risk Adjusted Performance0.0516
Mean Deviation1.05
Semi Deviation1.47
Downside Deviation1.53
Coefficient Of Variation3887.61
Standard Deviation1.41
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Atmos Energy Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Atmos Energy as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Atmos Energy's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Atmos Energy's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Atmos Energy Corp.
Please continue to Trending Equities. Note that the Atmos Energy Corp information on this page should be used as a complementary analysis to other Atmos Energy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running Atmos Energy Corp price analysis, check to measure Atmos Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Atmos Energy is operating at the current time. Most of Atmos Energy's value examination focuses on studying past and present price action to predict the probability of Atmos Energy's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Atmos Energy's price. Additionally, you may evaluate how the addition of Atmos Energy to your portfolios can decrease your overall portfolio volatility.
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Is Atmos Energy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Atmos Energy. If investors know Atmos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Atmos Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.18
Market Capitalization
15.9 B
Quarterly Revenue Growth YOY
0.35
Return On Assets
0.0279
Return On Equity
0.0882
The market value of Atmos Energy Corp is measured differently than its book value, which is the value of Atmos that is recorded on the company's balance sheet. Investors also form their own opinion of Atmos Energy's value that differs from its market value or its book value, called intrinsic value, which is Atmos Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Atmos Energy's market value can be influenced by many factors that don't directly affect Atmos Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Atmos Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine Atmos Energy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atmos Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.