Correlation Between Antero Resources and Delta Oil
Can any of the company-specific risk be diversified away by investing in both Antero Resources and Delta Oil 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 Delta Oil 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 Delta Oil Gas, you can compare the effects of market volatilities on Antero Resources and Delta Oil 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 Delta Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and Delta Oil.
Diversification Opportunities for Antero Resources and Delta Oil
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Antero and Delta is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and Delta Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Oil Gas 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 Delta Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Oil Gas has no effect on the direction of Antero Resources i.e., Antero Resources and Delta Oil go up and down completely randomly.
Pair Corralation between Antero Resources and Delta Oil
Allowing for the 90-day total investment horizon Antero Resources Corp is expected to under-perform the Delta Oil. But the stock apears to be less risky and, when comparing its historical volatility, Antero Resources Corp is 54.66 times less risky than Delta Oil. The stock trades about -0.01 of its potential returns per unit of risk. The Delta Oil Gas is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Delta Oil Gas on September 1, 2024 and sell it today you would lose (0.02) from holding Delta Oil Gas or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.51% |
| Values | Daily Returns |
Antero Resources Corp vs. Delta Oil Gas
Performance |
| Timeline |
| Antero Resources Corp |
| Delta Oil Gas |
Antero Resources and Delta Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Resources and Delta Oil
The main advantage of trading using opposite Antero Resources and Delta Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, Delta Oil 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 Delta Oil will offset losses from the drop in Delta Oil's long position.| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital Energy |
| Delta Oil vs. Rave Restaurant Group | Delta Oil vs. Shake Shack | Delta Oil vs. Westrock Coffee | Delta Oil vs. The Wendys 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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