Correlation Between Energy Transfer and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Energy Transfer 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 Energy Transfer and GasLog Partners 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 GasLog Partners LP, you can compare the effects of market volatilities on Energy Transfer 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 Energy Transfer with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Transfer and GasLog Partners.
Diversification Opportunities for Energy Transfer and GasLog Partners
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Energy and GasLog is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Energy Transfer LP 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 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 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 Energy Transfer i.e., Energy Transfer and GasLog Partners go up and down completely randomly.
Pair Corralation between Energy Transfer and GasLog Partners
Allowing for the 90-day total investment horizon Energy Transfer LP is expected to generate 1.84 times more return on investment than GasLog Partners. However, Energy Transfer is 1.84 times more volatile than GasLog Partners LP. It trades about 0.15 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.09 per unit of risk. If you would invest 1,282 in Energy Transfer LP on November 9, 2024 and sell it today you would earn a total of 755.00 from holding Energy Transfer LP or generate 58.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Transfer LP vs. GasLog Partners LP
Performance |
| Timeline |
| Energy Transfer LP |
| GasLog Partners LP |
Energy Transfer and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Transfer and GasLog Partners
The main advantage of trading using opposite Energy Transfer and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Transfer 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.| Energy Transfer vs. Kinder Morgan | Energy Transfer vs. MPLX LP | Energy Transfer vs. Enbridge | Energy Transfer vs. Enterprise Products Partners |
| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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