Correlation Between AMERICAN and Antero Midstream
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By analyzing existing cross correlation between AMERICAN EXPRESS PANY and Antero Midstream Partners, you can compare the effects of market volatilities on AMERICAN 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 AMERICAN with a short position of Antero Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMERICAN and Antero Midstream.
Diversification Opportunities for AMERICAN and Antero Midstream
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMERICAN and Antero is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding AMERICAN EXPRESS PANY 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 AMERICAN 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 AMERICAN EXPRESS PANY 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 AMERICAN i.e., AMERICAN and Antero Midstream go up and down completely randomly.
Pair Corralation between AMERICAN and Antero Midstream
Assuming the 90 days trading horizon AMERICAN EXPRESS PANY is expected to generate 0.28 times more return on investment than Antero Midstream. However, AMERICAN EXPRESS PANY is 3.63 times less risky than Antero Midstream. It trades about -0.14 of its potential returns per unit of risk. Antero Midstream Partners is currently generating about -0.11 per unit of risk. If you would invest 9,784 in AMERICAN EXPRESS PANY on September 12, 2024 and sell it today you would lose (112.00) from holding AMERICAN EXPRESS PANY or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
AMERICAN EXPRESS PANY vs. Antero Midstream Partners
Performance |
| Timeline |
| AMERICAN EXPRESS PANY |
| Antero Midstream Partners |
AMERICAN and Antero Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMERICAN and Antero Midstream
The main advantage of trading using opposite AMERICAN and Antero Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMERICAN 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.| AMERICAN vs. RBC Bearings Incorporated | AMERICAN vs. Kontoor Brands | AMERICAN vs. Jeld Wen Holding | AMERICAN vs. Tyson Foods |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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