This module allows you to analyze existing cross correlation between Rex Energy Corporation and Antero Resources Corporation. You can compare the effects of market volatilities on Rex Energy 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 Rex Energy with a short position of Antero Resources. See also your portfolio center
. Please also check ongoing floating volatility patterns of Rex Energy
and Antero Resources
Rex Energy Corp. vs Antero Resources Corp.
Given the investment horizon of 30 days, Rex Energy Corporation is expected to generate 7.01 times more return on investment than Antero Resources. However, Rex Energy is 7.01 times more volatile than Antero Resources Corporation. It trades about 0.11 of its potential returns per unit of risk. Antero Resources Corporation is currently generating about 0.14 per unit of risk. If you would invest 140 in Rex Energy Corporation on December 25, 2017 and sell it today you would earn a total of 24 from holding Rex Energy Corporation or generate 17.14% return on investment over 30 days.
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Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Rex Energy Corp. and Antero Resources Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Antero Resources and Rex Energy 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 Rex Energy Corporation 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 Rex Energy i.e. Rex Energy and Antero Resources go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Rex Energy Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Antero Resources Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.