Correlation Between Antero Resources and CHK Old
Can any of the company-specific risk be diversified away by investing in both Antero Resources and CHK Old 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 CHK Old 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 CHK Old, you can compare the effects of market volatilities on Antero Resources and CHK Old 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 CHK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and CHK Old.
Diversification Opportunities for Antero Resources and CHK Old
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Antero and CHK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and CHK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHK Old 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 CHK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHK Old has no effect on the direction of Antero Resources i.e., Antero Resources and CHK Old go up and down completely randomly.
Pair Corralation between Antero Resources and CHK Old
If you would invest 3,325 in Antero Resources Corp on October 25, 2024 and sell it today you would earn a total of 749.00 from holding Antero Resources Corp or generate 22.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Antero Resources Corp vs. CHK Old
Performance |
| Timeline |
| Antero Resources Corp |
| CHK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antero Resources and CHK Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Resources and CHK Old
The main advantage of trading using opposite Antero Resources and CHK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, CHK Old 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 CHK Old will offset losses from the drop in CHK Old's long position.| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital Energy |
| CHK Old vs. Range Resources Corp | CHK Old vs. Antero Resources Corp | CHK Old vs. EQT Corporation | CHK Old vs. Comstock Resources |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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