Correlation Between Obsidian Energy and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Obsidian Energy and Antero Resources 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 Obsidian Energy and Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Obsidian Energy and Antero Resources Corp, you can compare the effects of market volatilities on Obsidian 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 Obsidian Energy with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Obsidian Energy and Antero Resources.
Diversification Opportunities for Obsidian Energy and Antero Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Obsidian and Antero is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Obsidian Energy and Antero Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Resources Corp and Obsidian 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 Obsidian Energy 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 Corp has no effect on the direction of Obsidian Energy i.e., Obsidian Energy and Antero Resources go up and down completely randomly.
Pair Corralation between Obsidian Energy and Antero Resources
If you would invest 2,212 in Antero Resources Corp on January 24, 2024 and sell it today you would earn a total of 825.00 from holding Antero Resources Corp or generate 37.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Obsidian Energy vs. Antero Resources Corp
Performance |
Timeline |
Obsidian Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antero Resources Corp |
Obsidian Energy and Antero Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Obsidian Energy and Antero Resources
The main advantage of trading using opposite Obsidian Energy and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Obsidian Energy position performs unexpectedly, Antero Resources 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 Resources will offset losses from the drop in Antero Resources' long position.Obsidian Energy vs. Tradeweb Markets | Obsidian Energy vs. Getty Realty | Obsidian Energy vs. BBB Foods | Obsidian Energy vs. Evolution Gaming Group |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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