Correlation Between Calumet Specialty and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Calumet Specialty 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 Calumet Specialty and Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calumet Specialty Products and Antero Resources Corp, you can compare the effects of market volatilities on Calumet Specialty 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 Calumet Specialty with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calumet Specialty and Antero Resources.
Diversification Opportunities for Calumet Specialty and Antero Resources
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calumet and Antero is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products 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 Calumet Specialty 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 Calumet Specialty Products 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 Calumet Specialty i.e., Calumet Specialty and Antero Resources go up and down completely randomly.
Pair Corralation between Calumet Specialty and Antero Resources
Given the investment horizon of 90 days Calumet Specialty is expected to generate 3.6 times less return on investment than Antero Resources. In addition to that, Calumet Specialty is 1.2 times more volatile than Antero Resources Corp. It trades about 0.09 of its total potential returns per unit of risk. Antero Resources Corp is currently generating about 0.4 per unit of volatility. If you would invest 2,588 in Antero Resources Corp on September 1, 2024 and sell it today you would earn a total of 681.00 from holding Antero Resources Corp or generate 26.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calumet Specialty Products vs. Antero Resources Corp
Performance |
| Timeline |
| Calumet Specialty |
| Antero Resources Corp |
Calumet Specialty and Antero Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calumet Specialty and Antero Resources
The main advantage of trading using opposite Calumet Specialty and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calumet Specialty 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.| Calumet Specialty vs. Battalion Oil Corp | Calumet Specialty vs. Granite Ridge Resources | Calumet Specialty vs. GeoPark | Calumet Specialty vs. Crescent Energy Co |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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