Correlation Between Genesis Energy and Crestwood Equity
Can any of the company-specific risk be diversified away by investing in both Genesis Energy and Crestwood Equity 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 Genesis Energy and Crestwood Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genesis Energy LP and Crestwood Equity Partners, you can compare the effects of market volatilities on Genesis Energy and Crestwood Equity 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 Genesis Energy with a short position of Crestwood Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Energy and Crestwood Equity.
Diversification Opportunities for Genesis Energy and Crestwood Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genesis and Crestwood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Energy LP and Crestwood Equity Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crestwood Equity Partners and Genesis Energy 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 Genesis Energy LP are associated (or correlated) with Crestwood Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crestwood Equity Partners has no effect on the direction of Genesis Energy i.e., Genesis Energy and Crestwood Equity go up and down completely randomly.
Pair Corralation between Genesis Energy and Crestwood Equity
If you would invest 1,069 in Genesis Energy LP on November 3, 2024 and sell it today you would lose (17.00) from holding Genesis Energy LP or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Genesis Energy LP vs. Crestwood Equity Partners
Performance |
| Timeline |
| Genesis Energy LP |
| Crestwood Equity Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genesis Energy and Crestwood Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesis Energy and Crestwood Equity
The main advantage of trading using opposite Genesis Energy and Crestwood Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Energy position performs unexpectedly, Crestwood Equity 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 Crestwood Equity will offset losses from the drop in Crestwood Equity's long position.| Genesis Energy vs. Brooge Holdings | Genesis Energy vs. Plains All American | Genesis Energy vs. Western Midstream Partners | Genesis Energy vs. Hess Midstream Partners |
| Crestwood Equity vs. Western Midstream Partners | Crestwood Equity vs. DT Midstream | Crestwood Equity vs. MPLX LP | Crestwood Equity vs. Enterprise Products 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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