Correlation Between Antero Resources and DT Midstream
Can any of the company-specific risk be diversified away by investing in both Antero Resources and DT Midstream 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 DT Midstream 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 DT Midstream, you can compare the effects of market volatilities on Antero Resources and DT Midstream 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 DT Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Resources and DT Midstream.
Diversification Opportunities for Antero Resources and DT Midstream
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Antero and DTM is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and DT Midstream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DT Midstream 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 DT Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DT Midstream has no effect on the direction of Antero Resources i.e., Antero Resources and DT Midstream go up and down completely randomly.
Pair Corralation between Antero Resources and DT Midstream
Allowing for the 90-day total investment horizon Antero Resources is expected to generate 1.37 times less return on investment than DT Midstream. In addition to that, Antero Resources is 1.67 times more volatile than DT Midstream. It trades about 0.05 of its total potential returns per unit of risk. DT Midstream is currently generating about 0.12 per unit of volatility. If you would invest 5,043 in DT Midstream on September 4, 2025 and sell it today you would earn a total of 6,964 from holding DT Midstream or generate 138.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antero Resources Corp vs. DT Midstream
Performance |
| Timeline |
| Antero Resources Corp |
| DT Midstream |
Antero Resources and DT Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Resources and DT Midstream
The main advantage of trading using opposite Antero Resources and DT Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Resources position performs unexpectedly, DT Midstream 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 DT Midstream will offset losses from the drop in DT Midstream's long position.| Antero Resources vs. Data3 Limited | Antero Resources vs. Quantum Medical Transport | Antero Resources vs. Nexstar Broadcasting Group | Antero Resources vs. Konoike Transport CoLtd |
| DT Midstream vs. World of Wireless | DT Midstream vs. Electreon Wireless | DT Midstream vs. Quality One Wireless | DT Midstream vs. AG Mortgage Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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