Correlation Between UNIQA INSURANCE and Atmos Energy

Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE 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 UNIQA INSURANCE and Atmos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UNIQA INSURANCE GR and Atmos Energy, you can compare the effects of market volatilities on UNIQA INSURANCE 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 UNIQA INSURANCE with a short position of Atmos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Atmos Energy.

Diversification Opportunities for UNIQA INSURANCE and Atmos Energy

-0.37

Correlation Coefficient

UNIQA INSURANCE  Atmos Energy

Very good diversification

The 3 months correlation between UNIQA and Atmos is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Atmos Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atmos Energy and UNIQA INSURANCE 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 UNIQA INSURANCE GR 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 UNIQA INSURANCE i.e., UNIQA INSURANCE and Atmos Energy go up and down completely randomly.

Pair Corralation between UNIQA INSURANCE and Atmos Energy

Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 3.55 times less return on investment than Atmos Energy. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 1.4 times less risky than Atmos Energy. It trades about 0.03 of its potential returns per unit of risk. Atmos Energy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  9,603  in Atmos Energy on September 25, 2024 and sell it today you would earn a total of  3,787  from holding Atmos Energy or generate 39.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

UNIQA INSURANCE GR  vs.  Atmos Energy

UNIQA INSURANCE GR

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, UNIQA INSURANCE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Atmos Energy

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atmos Energy are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Atmos Energy may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with UNIQA INSURANCE and Atmos Energy

The main advantage of trading using opposite UNIQA INSURANCE and Atmos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE 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.

The idea behind UNIQA INSURANCE GR 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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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.