Correlation Between CBL International and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both CBL International 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 CBL International and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL International Limited and GasLog Partners LP, you can compare the effects of market volatilities on CBL International 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 CBL International with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL International and GasLog Partners.
Diversification Opportunities for CBL International and GasLog Partners
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CBL and GasLog is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CBL International Limited 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 CBL International 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 CBL International Limited 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 CBL International i.e., CBL International and GasLog Partners go up and down completely randomly.
Pair Corralation between CBL International and GasLog Partners
Given the investment horizon of 90 days CBL International Limited is expected to generate 9.41 times more return on investment than GasLog Partners. However, CBL International is 9.41 times more volatile than GasLog Partners LP. It trades about 0.13 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.17 per unit of risk. If you would invest 94.00 in CBL International Limited on August 28, 2024 and sell it today you would earn a total of 7.00 from holding CBL International Limited or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CBL International Limited vs. GasLog Partners LP
Performance |
| Timeline |
| CBL International |
| GasLog Partners LP |
CBL International and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL International and GasLog Partners
The main advantage of trading using opposite CBL International and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL International 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.| CBL International vs. GasLog Partners LP | CBL International vs. Dynagas LNG Partners | CBL International vs. Imperial Petroleum Preferred | CBL International vs. Imperial Petroleum |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |