Correlation Between Battalion Oil and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Battalion Oil and Antero Resources 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 Battalion Oil and Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Battalion Oil Corp and Antero Resources Corp, you can compare the effects of market volatilities on Battalion Oil and Antero Resources 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 Battalion Oil with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Battalion Oil and Antero Resources.
Diversification Opportunities for Battalion Oil and Antero Resources
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Battalion and Antero is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Battalion Oil Corp and Antero Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Resources Corp and Battalion Oil 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 Battalion Oil Corp are associated (or correlated) with Antero Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Resources Corp has no effect on the direction of Battalion Oil i.e., Battalion Oil and Antero Resources go up and down completely randomly.
Pair Corralation between Battalion Oil and Antero Resources
Given the investment horizon of 90 days Battalion Oil Corp is expected to generate 5.59 times more return on investment than Antero Resources. However, Battalion Oil is 5.59 times more volatile than Antero Resources Corp. It trades about 0.03 of its potential returns per unit of risk. Antero Resources Corp is currently generating about 0.15 per unit of risk. If you would invest 300.00 in Battalion Oil Corp on November 2, 2024 and sell it today you would lose (107.00) from holding Battalion Oil Corp or give up 35.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Battalion Oil Corp vs. Antero Resources Corp
Performance |
| Timeline |
| Battalion Oil Corp |
| Antero Resources Corp |
Battalion Oil and Antero Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Battalion Oil and Antero Resources
The main advantage of trading using opposite Battalion Oil and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Battalion Oil position performs unexpectedly, Antero Resources 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 Antero Resources will offset losses from the drop in Antero Resources' long position.| Battalion Oil vs. Epsilon Energy | Battalion Oil vs. Citizens Community Bancorp | Battalion Oil vs. Perma Pipe International Holdings | Battalion Oil vs. Amplify Energy Corp |
| Antero Resources vs. EQT Corporation | Antero Resources vs. Matador Resources | Antero Resources vs. Diamondback Energy | Antero Resources vs. Vital 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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