Antero Stock Volatility

AM -  USA Stock  

USD 9.20  0.16  1.71%

We consider Antero Midstream somewhat reliable. Antero Midstream Corp secures Sharpe Ratio (or Efficiency) of 0.0165, which signifies that the company had 0.0165% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Antero Midstream Corp, which you can use to evaluate the future volatility of the firm. Please confirm Antero Midstream Corp Downside Deviation of 2.2, risk adjusted performance of 0.0548, and Mean Deviation of 1.78 to double-check if the risk estimate we provide is consistent with the expected return of 0.0373%.

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Antero Midstream Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Antero daily returns, and it is calculated using variance and standard deviation. We also use Antero's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Antero Midstream volatility.

360 Days Market Risk

Somewhat reliable

Chance of Distress

Average

360 Days Economic Sensitivity

Slowly supersedes the market

Antero Midstream Market Sensitivity And Downside Risk

Antero Midstream's beta coefficient measures the volatility of Antero stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Antero stock's returns against your selected market. In other words, Antero Midstream's beta of 0.32 provides an investor with an approximation of how much risk Antero Midstream stock can potentially add to one of your existing portfolios.
Let's try to break down what Antero's beta means in this case. As returns on the market increase, Antero Midstream returns are expected to increase less than the market. However, during the bear market, the loss on holding Antero Midstream will be expected to be smaller as well.
3 Months Beta |Analyze Antero Midstream Corp Demand Trend
Check current 90 days Antero Midstream correlation with market (DOW)

Antero Beta

    
  0.32  
Antero standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  2.26  
It is essential to understand the difference between upside risk (as represented by Antero Midstream's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Antero Midstream stock's daily returns or price. Since the actual investment returns on holding a position in Antero Midstream stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Antero Midstream.

Antero Midstream Corp Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Antero Midstream Corp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Antero Midstream Projected Return Density Against Market

Allowing for the 90-day total investment horizon Antero Midstream has a beta of 0.3224 . This suggests as returns on the market go up, Antero Midstream average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Antero Midstream Corp will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Antero Midstream or Energy sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Antero Midstream stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Antero stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.1302, implying that it can generate a 0.13 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Antero Midstream Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Antero Midstream or Energy sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Antero Midstream stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Antero stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Allowing for the 90-day total investment horizon the coefficient of variation of Antero Midstream is 6063.26. The daily returns are distributed with a variance of 5.12 and standard deviation of 2.26. The mean deviation of Antero Midstream Corp is currently at 1.79. For similar time horizon, the selected benchmark (DOW) has volatility of 0.74
α
Alpha over DOW
0.13
β
Beta against DOW0.32
σ
Overall volatility
2.26
Ir
Information ratio 0.05

Antero Midstream Stock Return Volatility

Antero Midstream historical daily return volatility represents how much Antero Midstream stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company accepts 2.2619% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 0.748% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Antero Midstream Volatility

Volatility is a rate at which the price of Antero Midstream or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Antero Midstream may increase or decrease. In other words, similar to Antero's beta indicator, it measures the risk of Antero Midstream and helps estimate the fluctuations that may happen in a short period of time. So if prices of Antero Midstream fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Market Capitalization3.7 B3.9 B
Antero Midstream Corporation owns, operates, and develops midstream energy infrastructure. The company was incorporated in 2013 and is headquartered in Denver, Colorado. Antero Midstream operates under Oil Gas Midstream classification in the United States and is traded on New York Stock Exchange. It employs 522 people.

Nearest Antero long CALL Option Payoff at Expiration

Antero Midstream's implied volatility is one of the determining factors in the pricing options written on Antero Midstream Corp. Implied volatility approximates the future value of Antero Midstreamusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Antero Midstream Corp over a specific time period.
View All Antero options
AM210820C00002500 is a CALL option contract on Antero Midstream's common stock with a strick price of 2.5 expiring on 2021-08-20. The contract was last traded on 2021-08-02 at 15:33:06 for $6.88 and, as of today, has 16 days remaining before the expiration. The option is currently trading at a bid price of $6.7, and an ask price of $7.1. The implied volatility as of the 4th of August is 354.2836.
 Profit 
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      Antero Midstream Price At Expiration 

Antero Midstream Investment Opportunity

Antero Midstream Corp has a volatility of 2.26 and is 3.01 times more volatile than DOW. 19  of all equities and portfolios are less risky than Antero Midstream. Compared to the overall equity markets, volatility of historical daily returns of Antero Midstream Corp is lower than 19 () of all global equities and portfolios over the last 90 days. Use Antero Midstream Corp to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Antero Midstream to be traded at $8.92 in 90 days. . Let's try to break down what Antero's beta means in this case. As returns on the market increase, Antero Midstream returns are expected to increase less than the market. However, during the bear market, the loss on holding Antero Midstream will be expected to be smaller as well.

Average diversification

The correlation between Antero Midstream Corp and DJI is Average diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Antero Midstream Corp and DJI in the same portfolio assuming nothing else is changed.

Antero Midstream Additional Risk Indicators

The analysis of Antero Midstream's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Antero Midstream's investment and either accepting that risk or mitigating it. Along with some common measures of Antero Midstream stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.0548
Market Risk Adjusted Performance0.4323
Mean Deviation1.78
Semi Deviation2.13
Downside Deviation2.2
Coefficient Of Variation1534.78
Standard Deviation2.24
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Antero Midstream Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Antero Midstream as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Antero Midstream's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Antero Midstream's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Antero Midstream Corp.
Please continue to Trending Equities. Note that the Antero Midstream Corp information on this page should be used as a complementary analysis to other Antero Midstream's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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When running Antero Midstream Corp price analysis, check to measure Antero Midstream's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Antero Midstream is operating at the current time. Most of Antero Midstream's value examination focuses on studying past and present price action to predict the probability of Antero Midstream's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Antero Midstream's price. Additionally, you may evaluate how the addition of Antero Midstream to your portfolios can decrease your overall portfolio volatility.
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The market value of Antero Midstream Corp is measured differently than its book value, which is the value of Antero that is recorded on the company's balance sheet. Investors also form their own opinion of Antero Midstream's value that differs from its market value or its book value, called intrinsic value, which is Antero Midstream's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Antero Midstream's market value can be influenced by many factors that don't directly affect Antero Midstream Corp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Antero Midstream's value and its price as these two are different measures arrived at by different means. Investors typically determine Antero Midstream value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Antero Midstream's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.