Correlation Between Antero Resources and Cameco Corp
Can any of the company-specific risk be diversified away by investing in both Antero Resources and Cameco Corp 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 Cameco Corp 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 Cameco Corp, you can compare the effects of market volatilities on Antero Resources and Cameco Corp 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 Cameco Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and Cameco Corp.
Diversification Opportunities for Antero Resources and Cameco Corp
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Antero and Cameco is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and Cameco Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cameco Corp 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 Cameco Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cameco Corp has no effect on the direction of Antero Resources i.e., Antero Resources and Cameco Corp go up and down completely randomly.
Pair Corralation between Antero Resources and Cameco Corp
Allowing for the 90-day total investment horizon Antero Resources Corp is expected to generate 1.31 times more return on investment than Cameco Corp. However, Antero Resources is 1.31 times more volatile than Cameco Corp. It trades about 0.28 of its potential returns per unit of risk. Cameco Corp is currently generating about 0.1 per unit of risk. If you would invest 2,741 in Antero Resources Corp on August 28, 2024 and sell it today you would earn a total of 582.00 from holding Antero Resources Corp or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antero Resources Corp vs. Cameco Corp
Performance |
| Timeline |
| Antero Resources Corp |
| Cameco Corp |
Antero Resources and Cameco Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Resources and Cameco Corp
The main advantage of trading using opposite Antero Resources and Cameco Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, Cameco Corp 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 Cameco Corp will offset losses from the drop in Cameco Corp's long position.| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital Energy |
| Cameco Corp vs. Energy Fuels | Cameco Corp vs. NexGen Energy | Cameco Corp vs. Uranium Energy Corp | Cameco Corp vs. Ur 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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