Correlation Between Expand Energy and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Expand 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 Expand 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 Expand Energy and Antero Resources Corp, you can compare the effects of market volatilities on Expand 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 Expand Energy with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Antero Resources.
Diversification Opportunities for Expand Energy and Antero Resources
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Expand and Antero is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Expand 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 Expand 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 Expand 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 Expand Energy i.e., Expand Energy and Antero Resources go up and down completely randomly.
Pair Corralation between Expand Energy and Antero Resources
Considering the 90-day investment horizon Expand Energy is expected to under-perform the Antero Resources. But the stock apears to be less risky and, when comparing its historical volatility, Expand Energy is 1.28 times less risky than Antero Resources. The stock trades about -0.13 of its potential returns per unit of risk. The Antero Resources Corp is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 3,892 in Antero Resources Corp on June 8, 2025 and sell it today you would lose (630.00) from holding Antero Resources Corp or give up 16.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expand Energy vs. Antero Resources Corp
Performance |
| Timeline |
| Expand Energy |
| Antero Resources Corp |
Expand Energy and Antero Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Antero Resources
The main advantage of trading using opposite Expand Energy and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand 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.| Expand Energy vs. John B Sanfilippo | Expand Energy vs. Ecolab Inc | Expand Energy vs. The Mosaic | Expand Energy vs. Avient Corp |
| Antero Resources vs. Range Resources Corp | Antero Resources vs. Permian Resources | Antero Resources vs. Expand Energy | Antero Resources vs. EQT Corporation |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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