Correlation Between Sonos and ATMOS
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By analyzing existing cross correlation between Sonos Inc and ATMOS ENERGY P, you can compare the effects of market volatilities on Sonos 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 Sonos with a short position of ATMOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonos and ATMOS.
Diversification Opportunities for Sonos and ATMOS
Average diversification
The 3 months correlation between Sonos and ATMOS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sonos Inc 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 Sonos 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 Sonos Inc 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 Sonos i.e., Sonos and ATMOS go up and down completely randomly.
Pair Corralation between Sonos and ATMOS
Given the investment horizon of 90 days Sonos Inc is expected to generate 1.78 times more return on investment than ATMOS. However, Sonos is 1.78 times more volatile than ATMOS ENERGY P. It trades about 0.09 of its potential returns per unit of risk. ATMOS ENERGY P is currently generating about 0.08 per unit of risk. If you would invest 1,400 in Sonos Inc on September 24, 2024 and sell it today you would earn a total of 58.00 from holding Sonos Inc or generate 4.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 57.14% |
Values | Daily Returns |
Sonos Inc vs. ATMOS ENERGY P
Performance |
Timeline |
Sonos Inc |
ATMOS ENERGY P |
Sonos and ATMOS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sonos and ATMOS
The main advantage of trading using opposite Sonos and ATMOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonos 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.The idea behind Sonos Inc and ATMOS ENERGY P 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.ATMOS vs. Sonos Inc | ATMOS vs. JD Sports Fashion | ATMOS vs. United Parks Resorts | ATMOS vs. Highway Holdings Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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