Correlation Between AltaGas and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both AltaGas and GasLog Partners 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 GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AltaGas and GasLog Partners LP, you can compare the effects of market volatilities on AltaGas and GasLog Partners 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 GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of AltaGas and GasLog Partners.
Diversification Opportunities for AltaGas and GasLog Partners
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between AltaGas and GasLog is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AltaGas and GasLog Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GasLog Partners LP 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 GasLog Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GasLog Partners LP has no effect on the direction of AltaGas i.e., AltaGas and GasLog Partners go up and down completely randomly.
Pair Corralation between AltaGas and GasLog Partners
Assuming the 90 days horizon AltaGas is expected to generate 3.74 times more return on investment than GasLog Partners. However, AltaGas is 3.74 times more volatile than GasLog Partners LP. It trades about 0.06 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.15 per unit of risk. If you would invest 1,644 in AltaGas on August 27, 2024 and sell it today you would earn a total of 872.00 from holding AltaGas or generate 53.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AltaGas vs. GasLog Partners LP
Performance |
| Timeline |
| AltaGas |
| GasLog Partners LP |
AltaGas and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AltaGas and GasLog Partners
The main advantage of trading using opposite AltaGas and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AltaGas position performs unexpectedly, GasLog Partners 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 GasLog Partners will offset losses from the drop in GasLog Partners' long position.| AltaGas vs. Navigator Holdings | AltaGas vs. Pembina Pipeline Corp | AltaGas vs. Marine Petroleum Trust | AltaGas vs. Dynagas LNG Partners |
| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Seapeak LLC | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |