Correlation Between Amplify Energy and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Amplify Energy and Antero Resources 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 Amplify Energy and Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Energy Corp and Antero Resources Corp, you can compare the effects of market volatilities on Amplify Energy and Antero Resources 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 Amplify Energy with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Energy and Antero Resources.
Diversification Opportunities for Amplify Energy and Antero Resources
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amplify and Antero is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Energy Corp and Antero Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Resources Corp and Amplify 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 Amplify Energy Corp are associated (or correlated) with Antero Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Resources Corp has no effect on the direction of Amplify Energy i.e., Amplify Energy and Antero Resources go up and down completely randomly.
Pair Corralation between Amplify Energy and Antero Resources
Given the investment horizon of 90 days Amplify Energy Corp is expected to under-perform the Antero Resources. But the stock apears to be less risky and, when comparing its historical volatility, Amplify Energy Corp is 1.65 times less risky than Antero Resources. The stock trades about -0.1 of its potential returns per unit of risk. The Antero Resources Corp is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 3,119 in Antero Resources Corp on October 9, 2024 and sell it today you would earn a total of 482.00 from holding Antero Resources Corp or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Energy Corp vs. Antero Resources Corp
Performance |
| Timeline |
| Amplify Energy Corp |
| Antero Resources Corp |
Amplify Energy and Antero Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Energy and Antero Resources
The main advantage of trading using opposite Amplify Energy and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Energy position performs unexpectedly, Antero Resources 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 Antero Resources will offset losses from the drop in Antero Resources' long position.| Amplify Energy vs. Vital Energy | Amplify Energy vs. Comstock Resources | Amplify Energy vs. Magnolia Oil Gas | Amplify Energy vs. Obsidian Energy |
| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital Energy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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