Correlation Between Dynagas LNG and Genesis Energy
Can any of the company-specific risk be diversified away by investing in both Dynagas LNG and Genesis Energy 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 Genesis Energy 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 Genesis Energy LP, you can compare the effects of market volatilities on Dynagas LNG and Genesis Energy 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 Genesis Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynagas LNG and Genesis Energy.
Diversification Opportunities for Dynagas LNG and Genesis Energy
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dynagas and Genesis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dynagas LNG Partners and Genesis Energy LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Energy 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 Genesis Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Energy LP has no effect on the direction of Dynagas LNG i.e., Dynagas LNG and Genesis Energy go up and down completely randomly.
Pair Corralation between Dynagas LNG and Genesis Energy
Given the investment horizon of 90 days Dynagas LNG Partners is expected to generate 1.63 times more return on investment than Genesis Energy. However, Dynagas LNG is 1.63 times more volatile than Genesis Energy LP. It trades about 0.33 of its potential returns per unit of risk. Genesis Energy LP is currently generating about 0.23 per unit of risk. If you would invest 381.00 in Dynagas LNG Partners on September 4, 2024 and sell it today you would earn a total of 97.00 from holding Dynagas LNG Partners or generate 25.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynagas LNG Partners vs. Genesis Energy LP
Performance |
| Timeline |
| Dynagas LNG Partners |
| Genesis Energy LP |
Dynagas LNG and Genesis Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynagas LNG and Genesis Energy
The main advantage of trading using opposite Dynagas LNG and Genesis Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynagas LNG position performs unexpectedly, Genesis Energy 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 Genesis Energy will offset losses from the drop in Genesis Energy'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 |
| Genesis Energy vs. Brooge Holdings | Genesis Energy vs. Plains All American | Genesis Energy vs. Western Midstream Partners | Genesis Energy vs. Hess Midstream 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets |