Correlation Between Antero Midstream and CMBTECH NV

Can any of the company-specific risk be diversified away by investing in both Antero Midstream and CMBTECH NV 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 Midstream and CMBTECH NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Antero Midstream and CMBTECH NV

0.35

Correlation Coefficient

Antero Midstream  CMBTECH NV

Weak diversification

The 3 months correlation between Antero and CMBTECH is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Antero Midstream Partners and CMBTECH NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMBTECH NV and Antero Midstream 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 Midstream Partners are associated (or correlated) with CMBTECH NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMBTECH NV has no effect on the direction of Antero Midstream i.e., Antero Midstream and CMBTECH NV go up and down completely randomly.

Pair Corralation between Antero Midstream and CMBTECH NV

Allowing for the 90-day total investment horizon Antero Midstream Partners is expected to generate 0.49 times more return on investment than CMBTECH NV. However, Antero Midstream Partners is 2.04 times less risky than CMBTECH NV. It trades about 0.11 of its potential returns per unit of risk. CMBTECH NV is currently generating about -0.01 per unit of risk. If you would invest  1,770  in Antero Midstream Partners on July 4, 2025 and sell it today you would earn a total of  171.00  from holding Antero Midstream Partners or generate 9.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Antero Midstream Partners  vs.  CMBTECH NV

Antero Midstream Partners

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Antero Midstream Partners are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Antero Midstream may actually be approaching a critical reversion point that can send shares even higher in November 2025.

CMBTECH NV

Risk-Adjusted Performance

Weakest

Over the last 90 days CMBTECH NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, CMBTECH NV is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Antero Midstream and CMBTECH NV

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

The idea behind Antero Midstream Partners and CMBTECH NV 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.