Correlation Between Antero Midstream and Summit Therapeutics
Can any of the company-specific risk be diversified away by investing in both Antero Midstream and Summit Therapeutics 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 Summit Therapeutics 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 Summit Therapeutics PLC, you can compare the effects of market volatilities on Antero Midstream and Summit Therapeutics 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 Summit Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Midstream and Summit Therapeutics.
Diversification Opportunities for Antero Midstream and Summit Therapeutics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Antero and Summit is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Antero Midstream Partners and Summit Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Therapeutics PLC 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 Summit Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Therapeutics PLC has no effect on the direction of Antero Midstream i.e., Antero Midstream and Summit Therapeutics go up and down completely randomly.
Pair Corralation between Antero Midstream and Summit Therapeutics
Allowing for the 90-day total investment horizon Antero Midstream is expected to generate 3.25 times less return on investment than Summit Therapeutics. But when comparing it to its historical volatility, Antero Midstream Partners is 5.35 times less risky than Summit Therapeutics. It trades about 0.43 of its potential returns per unit of risk. Summit Therapeutics PLC is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,928 in Summit Therapeutics PLC on October 26, 2024 and sell it today you would earn a total of 537.00 from holding Summit Therapeutics PLC or generate 27.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antero Midstream Partners vs. Summit Therapeutics PLC
Performance |
| Timeline |
| Antero Midstream Partners |
| Summit Therapeutics PLC |
Antero Midstream and Summit Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Midstream and Summit Therapeutics
The main advantage of trading using opposite Antero Midstream and Summit Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Midstream position performs unexpectedly, Summit Therapeutics 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 Summit Therapeutics will offset losses from the drop in Summit Therapeutics' 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 |
| Summit Therapeutics vs. Nkarta Inc | Summit Therapeutics vs. Cullinan Oncology LLC | Summit Therapeutics vs. Kezar Life Sciences | Summit Therapeutics vs. Kronos Bio |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world |