Correlation Between PBF Energy and Antero Resources

Can any of the company-specific risk be diversified away by investing in both PBF 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 PBF 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 PBF Energy and Antero Resources Corp, you can compare the effects of market volatilities on PBF 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 PBF Energy with a short position of Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBF Energy and Antero Resources.

Diversification Opportunities for PBF Energy and Antero Resources

-0.17

Correlation Coefficient

PBF Energy  Antero Resources

Good diversification

The 3 months correlation between PBF and Antero is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PBF 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 PBF 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 PBF 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 PBF Energy i.e., PBF Energy and Antero Resources go up and down completely randomly.

Pair Corralation between PBF Energy and Antero Resources

Considering the 90-day investment horizon PBF Energy is expected to generate 1.61 times more return on investment than Antero Resources. However, PBF Energy is 1.61 times more volatile than Antero Resources Corp. It trades about 0.08 of its potential returns per unit of risk. Antero Resources Corp is currently generating about -0.02 per unit of risk. If you would invest  1,851  in PBF Energy on May 6, 2025 and sell it today you would earn a total of  317.00  from holding PBF Energy or generate 17.13% return on investment over 90 days.

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

PBF Energy  vs.  Antero Resources Corp

PBF Energy

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PBF Energy are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting fundamental drivers, PBF Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Antero Resources Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Antero Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Antero Resources is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with PBF Energy and Antero Resources

The main advantage of trading using opposite PBF Energy and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBF 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.

The idea behind PBF Energy and Antero Resources Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.