Correlation Between Lincoln Electric and ATMOS
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By analyzing existing cross correlation between Lincoln Electric Holdings and ATMOS ENERGY P, you can compare the effects of market volatilities on Lincoln Electric and ATMOS 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 Lincoln Electric with a short position of ATMOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and ATMOS.
Diversification Opportunities for Lincoln Electric and ATMOS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lincoln and ATMOS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and ATMOS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMOS ENERGY P and Lincoln Electric 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 Lincoln Electric Holdings are associated (or correlated) with ATMOS. 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 P has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and ATMOS go up and down completely randomly.
Pair Corralation between Lincoln Electric and ATMOS
Given the investment horizon of 90 days Lincoln Electric Holdings is expected to generate 1.68 times more return on investment than ATMOS. However, Lincoln Electric is 1.68 times more volatile than ATMOS ENERGY P. It trades about 0.0 of its potential returns per unit of risk. ATMOS ENERGY P is currently generating about -0.05 per unit of risk. If you would invest 19,289 in Lincoln Electric Holdings on September 26, 2024 and sell it today you would lose (289.00) from holding Lincoln Electric Holdings or give up 1.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 92.06% |
Values | Daily Returns |
Lincoln Electric Holdings vs. ATMOS ENERGY P
Performance |
Timeline |
Lincoln Electric Holdings |
ATMOS ENERGY P |
Lincoln Electric and ATMOS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lincoln Electric and ATMOS
The main advantage of trading using opposite Lincoln Electric and ATMOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, ATMOS 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 will offset losses from the drop in ATMOS's long position.Lincoln Electric vs. AMCON Distributing | Lincoln Electric vs. Espey Mfg Electronics | Lincoln Electric vs. Servotronics | Lincoln Electric vs. CompX International |
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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 the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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