Correlation Between Brooge Holdings and AltaGas
Can any of the company-specific risk be diversified away by investing in both Brooge Holdings and AltaGas 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 Brooge Holdings and AltaGas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brooge Holdings and AltaGas, you can compare the effects of market volatilities on Brooge Holdings and AltaGas 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 Brooge Holdings with a short position of AltaGas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brooge Holdings and AltaGas.
Diversification Opportunities for Brooge Holdings and AltaGas
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brooge and AltaGas is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Brooge Holdings and AltaGas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AltaGas and Brooge Holdings 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 Brooge Holdings are associated (or correlated) with AltaGas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AltaGas has no effect on the direction of Brooge Holdings i.e., Brooge Holdings and AltaGas go up and down completely randomly.
Pair Corralation between Brooge Holdings and AltaGas
Given the investment horizon of 90 days Brooge Holdings is expected to under-perform the AltaGas. In addition to that, Brooge Holdings is 6.59 times more volatile than AltaGas. It trades about -0.14 of its total potential returns per unit of risk. AltaGas is currently generating about 0.06 per unit of volatility. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brooge Holdings vs. AltaGas
Performance |
| Timeline |
| Brooge Holdings |
| AltaGas |
Brooge Holdings and AltaGas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brooge Holdings and AltaGas
The main advantage of trading using opposite Brooge Holdings and AltaGas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brooge Holdings position performs unexpectedly, AltaGas 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 AltaGas will offset losses from the drop in AltaGas' long position.| Brooge Holdings vs. Teekay | Brooge Holdings vs. Targa Resources | Brooge Holdings vs. Teekay Tankers | Brooge Holdings vs. Dynagas LNG Partners |
| AltaGas vs. Navigator Holdings | AltaGas vs. Pembina Pipeline Corp | AltaGas vs. Marine Petroleum Trust | AltaGas vs. Dynagas LNG Partners |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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