This module allows you to analyze existing cross correlation between Caterpillar Inc 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
Caterpillar Inc vs Antero Resources Corp.
Considering 30-days investment horizon, Caterpillar Inc is expected to under-perform the Antero Resources. But the stock apears to be less risky and, when comparing its historical volatility, Caterpillar Inc is 1.14 times less risky than Antero Resources. The stock trades about -0.18 of its potential returns per unit of risk. The Antero Resources Corporation is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,938 in Antero Resources Corporation on January 22, 2018 and sell it today you would lose (82.00) from holding Antero Resources Corporation or give up 4.23% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor 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 Inc 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.
Over the last 30 days Caterpillar Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Antero Resources Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.