ABC is $25 with an ATR of 1.5 and a beta of 1.2 XYZ is $25 with an ATR of 1.5 and a beta of 2.75 If you knew for certain that the market averages were going to up by 1% tomorrow then which stock would you choose to buy and why?
XYZ of course, ATR doesn't care what the market in general does, they could both even be negatively correlated to market.