Correlation Between Antero Resources and Southwestern Energy
Can any of the company-specific risk be diversified away by investing in both Antero Resources and Southwestern Energy 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 Southwestern Energy 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 Southwestern Energy, you can compare the effects of market volatilities on Antero Resources and Southwestern Energy 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 Southwestern Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and Southwestern Energy.
Diversification Opportunities for Antero Resources and Southwestern Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antero and Southwestern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and Southwestern Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwestern Energy 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 Southwestern Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southwestern Energy has no effect on the direction of Antero Resources i.e., Antero Resources and Southwestern Energy go up and down completely randomly.
Pair Corralation between Antero Resources and Southwestern Energy
If you would invest 3,086 in Antero Resources Corp on October 20, 2024 and sell it today you would earn a total of 960.00 from holding Antero Resources Corp or generate 31.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Antero Resources Corp vs. Southwestern Energy
Performance |
| Timeline |
| Antero Resources Corp |
| Southwestern Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antero Resources and Southwestern Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Resources and Southwestern Energy
The main advantage of trading using opposite Antero Resources and Southwestern Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, Southwestern Energy 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 Southwestern Energy will offset losses from the drop in Southwestern Energy's long position.| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital Energy |
| Southwestern Energy vs. Antero Resources Corp | Southwestern Energy vs. EQT Corporation | Southwestern Energy vs. Matador Resources | Southwestern Energy vs. Range Resources Corp |
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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