Correlation Between U Power and Antero Midstream
Can any of the company-specific risk be diversified away by investing in both U Power and Antero Midstream 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 U Power and Antero Midstream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Power Limited and Antero Midstream Partners, you can compare the effects of market volatilities on U Power and Antero Midstream 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 U Power with a short position of Antero Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Antero Midstream.
Diversification Opportunities for U Power and Antero Midstream
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between UCAR and Antero is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Antero Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Midstream Partners and U Power 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 U Power Limited are associated (or correlated) with Antero Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Midstream Partners has no effect on the direction of U Power i.e., U Power and Antero Midstream go up and down completely randomly.
Pair Corralation between U Power and Antero Midstream
Given the investment horizon of 90 days U Power Limited is expected to generate 51.81 times more return on investment than Antero Midstream. However, U Power is 51.81 times more volatile than Antero Midstream Partners. It trades about 0.05 of its potential returns per unit of risk. Antero Midstream Partners is currently generating about 0.1 per unit of risk. If you would invest 3,788 in U Power Limited on September 2, 2024 and sell it today you would lose (3,156) from holding U Power Limited or give up 83.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Power Limited vs. Antero Midstream Partners
Performance |
| Timeline |
| U Power Limited |
| Antero Midstream Partners |
U Power and Antero Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Antero Midstream
The main advantage of trading using opposite U Power and Antero Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Antero Midstream 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 Midstream will offset losses from the drop in Antero Midstream's long position.| U Power vs. Advance Auto Parts | U Power vs. Tractor Supply | U Power vs. Genuine Parts Co | U Power vs. Five Below |
| Antero Midstream vs. EnLink Midstream LLC | Antero Midstream vs. Western Midstream Partners | Antero Midstream vs. Plains GP Holdings | Antero Midstream vs. Plains All American |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across 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 | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |