Correlation Between Antero Midstream and Brooge Energy
Can any of the company-specific risk be diversified away by investing in both Antero Midstream and Brooge 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 Antero Midstream and Brooge Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antero Midstream Partners and Brooge Energy Limited, you can compare the effects of market volatilities on Antero Midstream and Brooge 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 Antero Midstream with a short position of Brooge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Midstream and Brooge Energy.
Diversification Opportunities for Antero Midstream and Brooge Energy
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Antero and Brooge is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Antero Midstream Partners and Brooge Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brooge Energy Limited and Antero Midstream 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 Antero Midstream Partners are associated (or correlated) with Brooge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brooge Energy Limited has no effect on the direction of Antero Midstream i.e., Antero Midstream and Brooge Energy go up and down completely randomly.
Pair Corralation between Antero Midstream and Brooge Energy
Allowing for the 90-day total investment horizon Antero Midstream is expected to generate 129.59 times less return on investment than Brooge Energy. But when comparing it to its historical volatility, Antero Midstream Partners is 87.78 times less risky than Brooge Energy. It trades about 0.09 of its potential returns per unit of risk. Brooge Energy Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Brooge Energy Limited on August 27, 2024 and sell it today you would lose (24.85) from holding Brooge Energy Limited or give up 99.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.53% |
| Values | Daily Returns |
Antero Midstream Partners vs. Brooge Energy Limited
Performance |
| Timeline |
| Antero Midstream Partners |
| Brooge Energy Limited |
Antero Midstream and Brooge Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Midstream and Brooge Energy
The main advantage of trading using opposite Antero Midstream and Brooge Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Midstream position performs unexpectedly, Brooge 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 Brooge Energy will offset losses from the drop in Brooge Energy's long position.| Antero Midstream vs. EnLink Midstream LLC | Antero Midstream vs. Western Midstream Partners | Antero Midstream vs. Plains GP Holdings | Antero Midstream vs. Plains All American |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |