Correlation Analysis Between Caterpillar and Antero Resources

This module allows you to analyze existing cross correlation between Caterpillar and Antero Resources Corporation. You can compare the effects of market volatilities on Caterpillar 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 Caterpillar with a short position of Antero Resources. See also your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Antero Resources.
 Time Horizon     30 Days    Login   to change
Symbolsvs

Caterpillar Inc  vs.  Antero Resources Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Caterpillar is expected to under-perform the Antero Resources. But the stock apears to be less risky and, when comparing its historical volatility, Caterpillar is 1.27 times less risky than Antero Resources. The stock trades about -0.34 of its potential returns per unit of risk. The Antero Resources Corporation is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,931  in Antero Resources Corporation on May 21, 2018 and sell it today you would earn a total of  87.00  from holding Antero Resources Corporation or generate 4.51% return on investment over 30 days.

Pair Corralation between Caterpillar and Antero Resources

-0.35
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar Inc and Antero Resources Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Antero Resources and Caterpillar 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 Caterpillar 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 has no effect on the direction of Caterpillar i.e. Caterpillar and Antero Resources go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Caterpillar  
0 

Risk-Adjusted Performance

Over the last 30 days Caterpillar has generated negative risk-adjusted returns adding no value to investors with long positions.
Antero Resources  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Antero Resources Corporation are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

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