Correlation Between AltaGas and Dynagas LNG
Can any of the company-specific risk be diversified away by investing in both AltaGas and Dynagas LNG 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 AltaGas and Dynagas LNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AltaGas and Dynagas LNG Partners, you can compare the effects of market volatilities on AltaGas and Dynagas LNG 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 AltaGas with a short position of Dynagas LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of AltaGas and Dynagas LNG.
Diversification Opportunities for AltaGas and Dynagas LNG
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AltaGas and Dynagas is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AltaGas and Dynagas LNG Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynagas LNG Partners and AltaGas 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 AltaGas are associated (or correlated) with Dynagas LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynagas LNG Partners has no effect on the direction of AltaGas i.e., AltaGas and Dynagas LNG go up and down completely randomly.
Pair Corralation between AltaGas and Dynagas LNG
Assuming the 90 days horizon AltaGas is expected to generate 1.56 times more return on investment than Dynagas LNG. However, AltaGas is 1.56 times more volatile than Dynagas LNG Partners. It trades about 0.06 of its potential returns per unit of risk. Dynagas LNG Partners is currently generating about 0.06 per unit of risk. If you would invest 2,396 in AltaGas on September 1, 2024 and sell it today you would earn a total of 35.00 from holding AltaGas or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AltaGas vs. Dynagas LNG Partners
Performance |
| Timeline |
| AltaGas |
| Dynagas LNG Partners |
AltaGas and Dynagas LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AltaGas and Dynagas LNG
The main advantage of trading using opposite AltaGas and Dynagas LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AltaGas position performs unexpectedly, Dynagas LNG 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 Dynagas LNG will offset losses from the drop in Dynagas LNG's long position.| AltaGas vs. Navigator Holdings | AltaGas vs. Pembina Pipeline Corp | AltaGas vs. Marine Petroleum Trust | AltaGas vs. Dynagas LNG Partners |
| Dynagas LNG vs. GasLog Partners LP | Dynagas LNG vs. Dynagas LNG Partners | Dynagas LNG vs. GasLog Partners LP | Dynagas LNG vs. GasLog Partners LP |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets |