Correlation Between Genesis Energy and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Genesis Energy 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 Genesis Energy and GasLog Partners 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 GasLog Partners LP, you can compare the effects of market volatilities on Genesis Energy 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 Genesis Energy with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Energy and GasLog Partners.
Diversification Opportunities for Genesis Energy and GasLog Partners
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genesis and GasLog is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Energy 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 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 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 Genesis Energy i.e., Genesis Energy and GasLog Partners go up and down completely randomly.
Pair Corralation between Genesis Energy and GasLog Partners
Considering the 90-day investment horizon Genesis Energy LP is expected to under-perform the GasLog Partners. In addition to that, Genesis Energy is 3.41 times more volatile than GasLog Partners LP. It trades about -0.01 of its total potential returns per unit of risk. GasLog Partners LP is currently generating about 0.08 per unit of volatility. If you would invest 2,426 in GasLog Partners LP on September 3, 2024 and sell it today you would earn a total of 144.00 from holding GasLog Partners LP or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genesis Energy LP vs. GasLog Partners LP
Performance |
| Timeline |
| Genesis Energy LP |
| GasLog Partners LP |
Genesis Energy and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesis Energy and GasLog Partners
The main advantage of trading using opposite Genesis Energy and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Energy 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.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |