Correlation Between Kosmos Energy and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Kosmos Energy 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 Kosmos Energy and Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kosmos Energy and Antero Resources Corp, you can compare the effects of market volatilities on Kosmos Energy 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 Kosmos Energy with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosmos Energy and Antero Resources.
Diversification Opportunities for Kosmos Energy and Antero Resources
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kosmos and Antero is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kosmos Energy 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 Kosmos Energy 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 Kosmos Energy 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 Kosmos Energy i.e., Kosmos Energy and Antero Resources go up and down completely randomly.
Pair Corralation between Kosmos Energy and Antero Resources
Considering the 90-day investment horizon Kosmos Energy is expected to under-perform the Antero Resources. But the stock apears to be less risky and, when comparing its historical volatility, Kosmos Energy is 1.11 times less risky than Antero Resources. The stock trades about -0.01 of its potential returns per unit of risk. The Antero Resources Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,741 in Antero Resources Corp on August 29, 2024 and sell it today you would earn a total of 507.00 from holding Antero Resources Corp or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosmos Energy vs. Antero Resources Corp
Performance |
| Timeline |
| Kosmos Energy |
| Antero Resources Corp |
Kosmos Energy and Antero Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kosmos Energy and Antero Resources
The main advantage of trading using opposite Kosmos Energy and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosmos Energy 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.| Kosmos Energy vs. Matador Resources | Kosmos Energy vs. Murphy Oil | Kosmos Energy vs. Civitas Resources | Kosmos Energy vs. Magnolia Oil Gas |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |