Antero Stock Volatility

AR
 Stock
  

USD 36.02  1.78  4.71%   

Antero Resources appears to be not too volatile, given 3 months investment horizon. Antero Resources Corp secures Sharpe Ratio (or Efficiency) of 0.0799, which signifies that the company had 0.0799% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Antero Resources Corp, which you can use to evaluate the future volatility of the firm. Please makes use of Antero Resources' Risk Adjusted Performance of 0.045, mean deviation of 3.53, and Downside Deviation of 5.02 to double-check if our risk estimates are consistent with your expectations.
  
Antero Resources Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Antero daily returns, and it is calculated using variance and standard deviation. We also use Antero's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Antero Resources volatility.

720 Days Market Risk

Not too volatile

Chance of Distress

Below Average

720 Days Economic Sensitivity

Actively responds to the market

ESG Sustainability

While most ESG disclosures are voluntary, Antero Resources' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Antero Resources' managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Antero Resources can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Antero Resources at lower prices. For example, an investor can purchase Antero stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Antero Resources' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Antero Resources

0.79AAVVFAdvantage EnergyPairCorr
0.91AETUFArc Energy TrustPairCorr
0.8AMPYAmplify Energy CorpPairCorr
0.75APAApa CorpPairCorr
0.61AXASAbraxas Petro CorpPairCorr

Antero Resources Market Sensitivity And Downside Risk

Antero Resources' beta coefficient measures the volatility of Antero stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Antero stock's returns against your selected market. In other words, Antero Resources's beta of 1.79 provides an investor with an approximation of how much risk Antero Resources stock can potentially add to one of your existing portfolios.
Antero Resources Corp exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Antero Resources Corp individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Antero Resources future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Antero Resources' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Antero Resources' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Antero Resources Implied Volatility

Antero Resources' implied volatility exposes the market's sentiment of Antero Resources Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Antero Resources' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Antero Resources stock will not fluctuate a lot when Antero Resources' options are near their expiration.
3 Months Beta |Analyze Antero Resources Corp Demand Trend
Check current 90 days Antero Resources correlation with market (DOW)

Antero Beta

    
  1.79  
Antero standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  4.48  
It is essential to understand the difference between upside risk (as represented by Antero Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Antero Resources stock's daily returns or price. Since the actual investment returns on holding a position in Antero Resources stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Antero Resources.

Using Antero Put Option to Manage Risk

Put options written on Antero Resources grant holders of the option the right to sell a specified amount of Antero Resources at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Antero Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Antero Resources' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Antero Resources will be realized, the loss incurred will be offset by the profits made with the option trade.

Antero Resources' PUT expiring on 2022-08-12

   Profit   
Share
       Antero Resources Price At Expiration  

Current Antero Resources Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-12 PUT at $45.0-0.93920.02931052022-08-127.1 - 7.311.25View
Put
2022-08-12 PUT at $40.0-0.84410.116512022-08-122.15 - 2.52.36View
Put
2022-08-12 PUT at $39.5-0.82870.14912022-08-121.75 - 1.952.1View
Put
2022-08-12 PUT at $39.0-0.7470.18681262022-08-121.35 - 1.551.71View
Put
2022-08-12 PUT at $38.5-0.64040.2079392022-08-121.0 - 1.251.9View
Put
2022-08-12 PUT at $38.0-0.53550.2279332022-08-120.7 - 0.91.19View
Put
2022-08-12 PUT at $37.5-0.42540.2099872022-08-120.5 - 0.650.6View
Put
2022-08-12 PUT at $37.0-0.33030.1841672022-08-120.35 - 0.450.44View
Put
2022-08-12 PUT at $36.5-0.23730.1605682022-08-120.2 - 0.350.37View
Put
2022-08-12 PUT at $36.0-0.17640.12642722022-08-120.15 - 0.250.2View
Put
2022-08-12 PUT at $35.5-0.13260.0979182022-08-120.1 - 0.20.15View
View All Antero Resources Options

Antero Resources Corp Stock Volatility Analysis

Volatility refers to the frequency at which Antero Resources stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Antero Resources' price changes. Investors will then calculate the volatility of Antero Resources' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Antero Resources' volatility:

Historical Volatility

This type of stock volatility measures Antero Resources' fluctuations based on previous trends. It's commonly used to predict Antero Resources' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Antero Resources' current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Antero Resources Corp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
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Antero Resources Projected Return Density Against Market

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 1.7889 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Antero Resources will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Antero Resources or Energy sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Antero Resources stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Antero stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.0955, implying that it can generate a 0.0955 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Antero Resources' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Antero Resources stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Antero Resources Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Antero Resources or Energy sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Antero Resources stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Antero stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Allowing for the 90-day total investment horizon the coefficient of variation of Antero Resources is 1252.1. The daily returns are distributed with a variance of 20.08 and standard deviation of 4.48. The mean deviation of Antero Resources Corp is currently at 3.53. For similar time horizon, the selected benchmark (DOW) has volatility of 1.27
α
Alpha over DOW
0.1
β
Beta against DOW1.79
σ
Overall volatility
4.48
Ir
Information ratio 0.0239

Antero Resources Stock Return Volatility

Antero Resources historical daily return volatility represents how much Antero Resources stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The enterprise accepts 4.481% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.2724% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Antero Resources Volatility

Volatility is a rate at which the price of Antero Resources or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Antero Resources may increase or decrease. In other words, similar to Antero's beta indicator, it measures the risk of Antero Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Antero Resources fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2022
Market Capitalization5.5 B5.6 B
Antero Resources Corporation, an independent oil and natural gas company, acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. Antero Resources Corporation was founded in 2002 and is headquartered in Denver, Colorado. Antero Resources operates under Oil Gas EP classification in the United States and is traded on New York Stock Exchange. It employs 519 people.

Antero Resources Investment Opportunity

Antero Resources Corp has a volatility of 4.48 and is 3.53 times more volatile than DOW. 38  of all equities and portfolios are less risky than Antero Resources. Compared to the overall equity markets, volatility of historical daily returns of Antero Resources Corp is lower than 38 () of all global equities and portfolios over the last 90 days.
Use Antero Resources Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a very speculative upward sentiment. Check odds of Antero Resources to be traded at $34.22 in 90 days. .

Very weak diversification

The correlation between Antero Resources Corp and DJI is Very weak diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Antero Resources Corp and DJI in the same portfolio, assuming nothing else is changed.

Antero Resources Additional Risk Indicators

The analysis of Antero Resources' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Antero Resources' investment and either accepting that risk or mitigating it. Along with some common measures of Antero Resources stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.045
Market Risk Adjusted Performance0.0801
Mean Deviation3.53
Semi Deviation4.92
Downside Deviation5.02
Coefficient Of Variation3361.19
Standard Deviation4.55
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Antero Resources Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Antero Resources as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Antero Resources' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Antero Resources' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Antero Resources Corp.
Please continue to Trending Equities. Note that the Antero Resources Corp information on this page should be used as a complementary analysis to other Antero Resources' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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Is Antero Resources' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Antero Resources. If investors know Antero will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Antero Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
11.53
Market Capitalization
11.4 B
Quarterly Revenue Growth YOY
0.88
Return On Assets
0.0661
Return On Equity
0.17
The market value of Antero Resources Corp is measured differently than its book value, which is the value of Antero that is recorded on the company's balance sheet. Investors also form their own opinion of Antero Resources' value that differs from its market value or its book value, called intrinsic value, which is Antero Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Antero Resources' market value can be influenced by many factors that don't directly affect Antero Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Antero Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine Antero Resources value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Antero Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.