Correlation Between LEGRAND and Antero Midstream
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By analyzing existing cross correlation between LEGRAND S A and Antero Midstream Partners, you can compare the effects of market volatilities on LEGRAND 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 LEGRAND with a short position of Antero Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of LEGRAND and Antero Midstream.
Diversification Opportunities for LEGRAND and Antero Midstream
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LEGRAND and Antero is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding LEGRAND S A 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 LEGRAND 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 LEGRAND S A 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 LEGRAND i.e., LEGRAND and Antero Midstream go up and down completely randomly.
Pair Corralation between LEGRAND and Antero Midstream
Assuming the 90 days trading horizon LEGRAND S A is expected to under-perform the Antero Midstream. But the bond apears to be less risky and, when comparing its historical volatility, LEGRAND S A is 4.36 times less risky than Antero Midstream. The bond trades about -0.04 of its potential returns per unit of risk. The Antero Midstream Partners is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,192 in Antero Midstream Partners on September 2, 2024 and sell it today you would earn a total of 405.00 from holding Antero Midstream Partners or generate 33.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 87.1% |
| Values | Daily Returns |
LEGRAND S A vs. Antero Midstream Partners
Performance |
| Timeline |
| LEGRAND S A |
| Antero Midstream Partners |
LEGRAND and Antero Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LEGRAND and Antero Midstream
The main advantage of trading using opposite LEGRAND and Antero Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEGRAND 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.| LEGRAND vs. AEP TEX INC | LEGRAND vs. US BANK NATIONAL | LEGRAND vs. Bank of America | LEGRAND vs. GE Aerospace |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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