Correlation Between Canadian Natural and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Canadian Natural 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 Canadian Natural and Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Natural Resources and Antero Resources Corp, you can compare the effects of market volatilities on Canadian Natural 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 Canadian Natural with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Natural and Antero Resources.
Diversification Opportunities for Canadian Natural and Antero Resources
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canadian and Antero is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Natural Resources 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 Canadian Natural 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 Canadian Natural Resources 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 Canadian Natural i.e., Canadian Natural and Antero Resources go up and down completely randomly.
Pair Corralation between Canadian Natural and Antero Resources
Considering the 90-day investment horizon Canadian Natural is expected to generate 41.18 times less return on investment than Antero Resources. But when comparing it to its historical volatility, Canadian Natural Resources is 2.84 times less risky than Antero Resources. It trades about 0.02 of its potential returns per unit of risk. Antero Resources Corp is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,741 in Antero Resources Corp on August 27, 2024 and sell it today you would earn a total of 582.00 from holding Antero Resources Corp or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Natural Resources vs. Antero Resources Corp
Performance |
| Timeline |
| Canadian Natural Res |
| Antero Resources Corp |
Canadian Natural and Antero Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Natural and Antero Resources
The main advantage of trading using opposite Canadian Natural and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Natural 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.| Canadian Natural vs. Baytex Energy Corp | Canadian Natural vs. Vermilion Energy | Canadian Natural vs. Obsidian Energy | Canadian Natural vs. Ovintiv |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |