Correlation Between Core Laboratories and Atlas Energy

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

By analyzing existing cross correlation between Core Laboratories NV and Atlas Energy Solutions, you can compare the effects of market volatilities on Core Laboratories and Atlas 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 Core Laboratories with a short position of Atlas Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Laboratories and Atlas Energy.

Diversification Opportunities for Core Laboratories and Atlas Energy

0.72

Correlation Coefficient

Core Laboratories  Atlas Energy

Poor diversification

The 3 months correlation between Core and Atlas is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Core Laboratories NV and Atlas Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Energy Solutions and Core Laboratories 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 Core Laboratories NV are associated (or correlated) with Atlas Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Energy Solutions has no effect on the direction of Core Laboratories i.e., Core Laboratories and Atlas Energy go up and down completely randomly.

Pair Corralation between Core Laboratories and Atlas Energy

Considering the 90-day investment horizon Core Laboratories NV is expected to generate 1.13 times more return on investment than Atlas Energy. However, Core Laboratories is 1.13 times more volatile than Atlas Energy Solutions. It trades about 0.02 of its potential returns per unit of risk. Atlas Energy Solutions is currently generating about 0.02 per unit of risk. If you would invest  1,171  in Core Laboratories NV on April 29, 2025 and sell it today you would earn a total of  2.00  from holding Core Laboratories NV or generate 0.17% return on investment over 90 days.

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

Core Laboratories NV  vs.  Atlas Energy Solutions

Core Laboratories

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Core Laboratories NV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Core Laboratories is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Atlas Energy Solutions

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Energy Solutions are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Atlas Energy is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Core Laboratories and Atlas Energy

The main advantage of trading using opposite Core Laboratories and Atlas Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Laboratories position performs unexpectedly, Atlas 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 Atlas Energy will offset losses from the drop in Atlas Energy's long position.

The idea behind Core Laboratories NV and Atlas Energy Solutions 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.