Correlation Between Energy Transfer and Aemetis
Can any of the company-specific risk be diversified away by investing in both Energy Transfer and Aemetis 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 Energy Transfer and Aemetis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Transfer LP and Aemetis, you can compare the effects of market volatilities on Energy Transfer and Aemetis 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 Energy Transfer with a short position of Aemetis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Transfer and Aemetis.
Diversification Opportunities for Energy Transfer and Aemetis
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Energy and Aemetis is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Energy Transfer LP and Aemetis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aemetis and Energy Transfer 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 Energy Transfer LP are associated (or correlated) with Aemetis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aemetis has no effect on the direction of Energy Transfer i.e., Energy Transfer and Aemetis go up and down completely randomly.
Pair Corralation between Energy Transfer and Aemetis
Allowing for the 90-day total investment horizon Energy Transfer is expected to generate 1.29 times less return on investment than Aemetis. But when comparing it to its historical volatility, Energy Transfer LP is 4.96 times less risky than Aemetis. It trades about 0.18 of its potential returns per unit of risk. Aemetis is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 358.00 in Aemetis on August 24, 2024 and sell it today you would earn a total of 51.00 from holding Aemetis or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Transfer LP vs. Aemetis
Performance |
| Timeline |
| Energy Transfer LP |
| Aemetis |
Energy Transfer and Aemetis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Transfer and Aemetis
The main advantage of trading using opposite Energy Transfer and Aemetis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Transfer position performs unexpectedly, Aemetis 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 Aemetis will offset losses from the drop in Aemetis' long position.| Energy Transfer vs. Western Midstream Partners | Energy Transfer vs. MPLX LP | Energy Transfer vs. Hess Midstream Partners | Energy Transfer vs. Plains All American |
| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. Vertex 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |