Correlation Between Antero Resources and BKV
Can any of the company-specific risk be diversified away by investing in both Antero Resources and BKV 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 Resources and BKV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antero Resources Corp and BKV Corporation, you can compare the effects of market volatilities on Antero Resources and BKV 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 Resources with a short position of BKV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and BKV.
Diversification Opportunities for Antero Resources and BKV
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Antero and BKV is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and BKV Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKV Corporation and Antero Resources 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 Resources Corp are associated (or correlated) with BKV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKV Corporation has no effect on the direction of Antero Resources i.e., Antero Resources and BKV go up and down completely randomly.
Pair Corralation between Antero Resources and BKV
Allowing for the 90-day total investment horizon Antero Resources is expected to generate 1.02 times less return on investment than BKV. In addition to that, Antero Resources is 1.37 times more volatile than BKV Corporation. It trades about 0.31 of its total potential returns per unit of risk. BKV Corporation is currently generating about 0.44 per unit of volatility. If you would invest 1,787 in BKV Corporation on September 5, 2024 and sell it today you would earn a total of 389.00 from holding BKV Corporation or generate 21.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antero Resources Corp vs. BKV Corp.
Performance |
| Timeline |
| Antero Resources Corp |
| BKV Corporation |
Antero Resources and BKV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Resources and BKV
The main advantage of trading using opposite Antero Resources and BKV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, BKV 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 BKV will offset losses from the drop in BKV's long position.| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital Energy |
| BKV vs. Antero Resources Corp | BKV vs. Empire Petroleum Corp | BKV vs. Permian Resources | BKV vs. SandRidge 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| 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 | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |