Correlation Between Antero Resources and Calumet Specialty
Can any of the company-specific risk be diversified away by investing in both Antero Resources and Calumet Specialty 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 Calumet Specialty 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 Calumet Specialty Products, you can compare the effects of market volatilities on Antero Resources and Calumet Specialty 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 Calumet Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and Calumet Specialty.
Diversification Opportunities for Antero Resources and Calumet Specialty
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Antero and Calumet is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and Calumet Specialty Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calumet Specialty 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 Calumet Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calumet Specialty has no effect on the direction of Antero Resources i.e., Antero Resources and Calumet Specialty go up and down completely randomly.
Pair Corralation between Antero Resources and Calumet Specialty
Allowing for the 90-day total investment horizon Antero Resources Corp is expected to generate 0.9 times more return on investment than Calumet Specialty. However, Antero Resources Corp is 1.11 times less risky than Calumet Specialty. It trades about 0.26 of its potential returns per unit of risk. Calumet Specialty Products is currently generating about 0.07 per unit of risk. If you would invest 2,741 in Antero Resources Corp on August 29, 2024 and sell it today you would earn a total of 568.00 from holding Antero Resources Corp or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antero Resources Corp vs. Calumet Specialty Products
Performance |
| Timeline |
| Antero Resources Corp |
| Calumet Specialty |
Antero Resources and Calumet Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Resources and Calumet Specialty
The main advantage of trading using opposite Antero Resources and Calumet Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, Calumet Specialty 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 Calumet Specialty will offset losses from the drop in Calumet Specialty's long position.| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital Energy |
| Calumet Specialty vs. Antero Resources Corp | Calumet Specialty vs. Empire Petroleum Corp | Calumet Specialty vs. Permian Resources | Calumet Specialty vs. SM Energy Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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