Correlation Between Brooge Holdings and Dynagas LNG
Can any of the company-specific risk be diversified away by investing in both Brooge Holdings 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 Brooge Holdings and Dynagas LNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brooge Holdings and Dynagas LNG Partners, you can compare the effects of market volatilities on Brooge Holdings 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 Brooge Holdings with a short position of Dynagas LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brooge Holdings and Dynagas LNG.
Diversification Opportunities for Brooge Holdings and Dynagas LNG
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Brooge and Dynagas is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Brooge Holdings 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 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 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 Brooge Holdings i.e., Brooge Holdings and Dynagas LNG go up and down completely randomly.
Pair Corralation between Brooge Holdings and Dynagas LNG
Given the investment horizon of 90 days Brooge Holdings is expected to under-perform the Dynagas LNG. In addition to that, Brooge Holdings is 6.15 times more volatile than Dynagas LNG Partners. It trades about -0.03 of its total potential returns per unit of risk. Dynagas LNG Partners is currently generating about 0.06 per unit of volatility. If you would invest 1,973 in Dynagas LNG Partners on August 26, 2024 and sell it today you would earn a total of 566.00 from holding Dynagas LNG Partners or generate 28.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brooge Holdings vs. Dynagas LNG Partners
Performance |
| Timeline |
| Brooge Holdings |
| Dynagas LNG Partners |
Brooge Holdings and Dynagas LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brooge Holdings and Dynagas LNG
The main advantage of trading using opposite Brooge Holdings and Dynagas LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brooge Holdings 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.| Brooge Holdings vs. Teekay | Brooge Holdings vs. Targa Resources | Brooge Holdings vs. Teekay Tankers | Brooge Holdings vs. Dynagas LNG Partners |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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