Correlation Between Dynagas LNG and Cameco Corp
Can any of the company-specific risk be diversified away by investing in both Dynagas LNG and Cameco Corp 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 Cameco Corp 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 Cameco Corp, you can compare the effects of market volatilities on Dynagas LNG and Cameco Corp 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 Cameco Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynagas LNG and Cameco Corp.
Diversification Opportunities for Dynagas LNG and Cameco Corp
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dynagas and Cameco is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dynagas LNG Partners and Cameco Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cameco Corp 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 Cameco Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cameco Corp has no effect on the direction of Dynagas LNG i.e., Dynagas LNG and Cameco Corp go up and down completely randomly.
Pair Corralation between Dynagas LNG and Cameco Corp
Given the investment horizon of 90 days Dynagas LNG Partners is expected to under-perform the Cameco Corp. But the stock apears to be less risky and, when comparing its historical volatility, Dynagas LNG Partners is 1.78 times less risky than Cameco Corp. The stock trades about -0.33 of its potential returns per unit of risk. The Cameco Corp is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 5,163 in Cameco Corp on November 18, 2024 and sell it today you would lose (444.00) from holding Cameco Corp or give up 8.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynagas LNG Partners vs. Cameco Corp
Performance |
| Timeline |
| Dynagas LNG Partners |
| Cameco Corp |
Dynagas LNG and Cameco Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynagas LNG and Cameco Corp
The main advantage of trading using opposite Dynagas LNG and Cameco Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynagas LNG position performs unexpectedly, Cameco Corp 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 Cameco Corp will offset losses from the drop in Cameco Corp's long position.| Dynagas LNG vs. Tidewater Midstream and | Dynagas LNG vs. Martin Midstream Partners | Dynagas LNG vs. Kinetik Holdings | Dynagas LNG vs. Dynagas LNG Partners |
| Cameco Corp vs. Energy Fuels | Cameco Corp vs. NexGen Energy | Cameco Corp vs. Uranium Energy Corp | Cameco Corp vs. Ur Energy |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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