Correlation Between Dorian LPG and Antero Midstream

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

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

Diversification Opportunities for Dorian LPG and Antero Midstream

-0.39

Correlation Coefficient

Dorian LPG  Antero Midstream

Very good diversification

The 3 months correlation between Dorian and Antero is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dorian LPG and Antero Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Midstream Partners and Dorian LPG 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 Dorian LPG are associated (or correlated) with Antero Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Midstream Partners has no effect on the direction of Dorian LPG i.e., Dorian LPG and Antero Midstream go up and down completely randomly.

Pair Corralation between Dorian LPG and Antero Midstream

Considering the 90-day investment horizon Dorian LPG is expected to generate 1.79 times more return on investment than Antero Midstream. However, Dorian LPG is 1.79 times more volatile than Antero Midstream Partners. It trades about 0.15 of its potential returns per unit of risk. Antero Midstream Partners is currently generating about 0.08 per unit of risk. If you would invest  2,145  in Dorian LPG on May 5, 2025 and sell it today you would earn a total of  563.00  from holding Dorian LPG or generate 26.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Dorian LPG  vs.  Antero Midstream Partners

Dorian LPG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dorian LPG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Dorian LPG reported solid returns over the last few months and may actually be approaching a breakup point.

Antero Midstream Partners

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Antero Midstream Partners are ranked lower than 6 (%) 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 September 2025.

Pair Trading with Dorian LPG and Antero Midstream

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

The idea behind Dorian LPG and Antero Midstream Partners 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.