Correlation Between Crestwood Equity and Brooge Holdings
Can any of the company-specific risk be diversified away by investing in both Crestwood Equity and Brooge Holdings 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 Crestwood Equity and Brooge Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crestwood Equity Partners and Brooge Holdings, you can compare the effects of market volatilities on Crestwood Equity and Brooge Holdings 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 Crestwood Equity with a short position of Brooge Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crestwood Equity and Brooge Holdings.
Diversification Opportunities for Crestwood Equity and Brooge Holdings
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Crestwood and Brooge is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Crestwood Equity Partners and Brooge Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brooge Holdings and Crestwood Equity 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 Crestwood Equity Partners are associated (or correlated) with Brooge Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brooge Holdings has no effect on the direction of Crestwood Equity i.e., Crestwood Equity and Brooge Holdings go up and down completely randomly.
Pair Corralation between Crestwood Equity and Brooge Holdings
If you would invest 2,942 in Crestwood Equity Partners on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Crestwood Equity Partners or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Crestwood Equity Partners vs. Brooge Holdings
Performance |
| Timeline |
| Crestwood Equity Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brooge Holdings |
Crestwood Equity and Brooge Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crestwood Equity and Brooge Holdings
The main advantage of trading using opposite Crestwood Equity and Brooge Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crestwood Equity position performs unexpectedly, Brooge Holdings 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 Brooge Holdings will offset losses from the drop in Brooge Holdings' long position.| Crestwood Equity vs. Western Midstream Partners | Crestwood Equity vs. DT Midstream | Crestwood Equity vs. MPLX LP | Crestwood Equity vs. Enterprise Products Partners |
| Brooge Holdings vs. Teekay | Brooge Holdings vs. Targa Resources | Brooge Holdings vs. Teekay Tankers | Brooge Holdings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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