Correlation Between Dynagas LNG and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Dynagas LNG 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 Dynagas LNG and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynagas LNG Partners and GasLog Partners LP, you can compare the effects of market volatilities on Dynagas LNG 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 Dynagas LNG with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynagas LNG and GasLog Partners.
Diversification Opportunities for Dynagas LNG and GasLog Partners
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dynagas and GasLog is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dynagas LNG Partners 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 Dynagas LNG 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 Dynagas LNG Partners 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 Dynagas LNG i.e., Dynagas LNG and GasLog Partners go up and down completely randomly.
Pair Corralation between Dynagas LNG and GasLog Partners
Assuming the 90 days trading horizon Dynagas LNG is expected to generate 1.88 times less return on investment than GasLog Partners. But when comparing it to its historical volatility, Dynagas LNG Partners is 1.03 times less risky than GasLog Partners. It trades about 0.05 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,412 in GasLog Partners LP on August 23, 2024 and sell it today you would earn a total of 186.00 from holding GasLog Partners LP or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynagas LNG Partners vs. GasLog Partners LP
Performance |
| Timeline |
| Dynagas LNG Partners |
| GasLog Partners LP |
Dynagas LNG and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynagas LNG and GasLog Partners
The main advantage of trading using opposite Dynagas LNG and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynagas LNG 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.| Dynagas LNG vs. GasLog Partners LP | Dynagas LNG vs. Seapeak LLC | Dynagas LNG vs. Dynagas LNG Partners | Dynagas LNG vs. GasLog Partners LP |
| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Seapeak LLC | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. NGL Energy 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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