Correlation Between Atmos Energy and FirstEnergy
Can any of the company-specific risk be diversified away by investing in both Atmos Energy and FirstEnergy 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 Atmos Energy and FirstEnergy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atmos Energy and FirstEnergy, you can compare the effects of market volatilities on Atmos Energy and FirstEnergy 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 Atmos Energy with a short position of FirstEnergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atmos Energy and FirstEnergy.
Diversification Opportunities for Atmos Energy and FirstEnergy
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Atmos and FirstEnergy is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Atmos Energy and FirstEnergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstEnergy and Atmos Energy 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 Atmos Energy are associated (or correlated) with FirstEnergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstEnergy has no effect on the direction of Atmos Energy i.e., Atmos Energy and FirstEnergy go up and down completely randomly.
Pair Corralation between Atmos Energy and FirstEnergy
Considering the 90-day investment horizon Atmos Energy is expected to generate 1.41 times less return on investment than FirstEnergy. In addition to that, Atmos Energy is 1.09 times more volatile than FirstEnergy. It trades about 0.11 of its total potential returns per unit of risk. FirstEnergy is currently generating about 0.17 per unit of volatility. If you would invest 4,322 in FirstEnergy on August 25, 2025 and sell it today you would earn a total of 367.00 from holding FirstEnergy or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atmos Energy vs. FirstEnergy
Performance |
| Timeline |
| Atmos Energy |
| FirstEnergy |
Atmos Energy and FirstEnergy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atmos Energy and FirstEnergy
The main advantage of trading using opposite Atmos Energy and FirstEnergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmos Energy position performs unexpectedly, FirstEnergy 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 FirstEnergy will offset losses from the drop in FirstEnergy's long position.| Atmos Energy vs. DTE Energy | Atmos Energy vs. Ameren Corp | Atmos Energy vs. Eversource Energy | Atmos Energy vs. FirstEnergy |
| FirstEnergy vs. Southern Company | FirstEnergy vs. Duke Energy | FirstEnergy vs. GE Vernova LLC | FirstEnergy vs. National Grid PLC |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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