Correlation Between Antero Resources and Vivakor

Can any of the company-specific risk be diversified away by investing in both Antero Resources and Vivakor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Antero Resources and Vivakor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Antero Resources Corp and Vivakor, you can compare the effects of market volatilities on Antero Resources and Vivakor 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 Antero Resources with a short position of Vivakor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and Vivakor.

Diversification Opportunities for Antero Resources and Vivakor

-0.05

Correlation Coefficient

Antero Resources  Vivakor

Good diversification

The 3 months correlation between Antero and Vivakor is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and Vivakor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivakor and Antero Resources 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 Antero Resources Corp are associated (or correlated) with Vivakor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivakor has no effect on the direction of Antero Resources i.e., Antero Resources and Vivakor go up and down completely randomly.

Pair Corralation between Antero Resources and Vivakor

Allowing for the 90-day total investment horizon Antero Resources is expected to generate 10.96 times less return on investment than Vivakor. But when comparing it to its historical volatility, Antero Resources Corp is 2.28 times less risky than Vivakor. It trades about 0.01 of its potential returns per unit of risk. Vivakor is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  183.00  in Vivakor on January 26, 2024 and sell it today you would lose (35.00) from holding Vivakor or give up 19.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Antero Resources Corp  vs.  Vivakor

Antero Resources Corp

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Antero Resources Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Antero Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Vivakor

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vivakor are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Vivakor disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antero Resources and Vivakor

The main advantage of trading using opposite Antero Resources and Vivakor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, Vivakor 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 Vivakor will offset losses from the drop in Vivakor's long position.

The idea behind Antero Resources Corp and Vivakor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.