Correlation Between Genesis Energy and Holly Energy
Can any of the company-specific risk be diversified away by investing in both Genesis Energy and Holly 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 Genesis Energy and Holly Energy 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 Holly Energy Partners, you can compare the effects of market volatilities on Genesis Energy and Holly 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 Genesis Energy with a short position of Holly Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Energy and Holly Energy.
Diversification Opportunities for Genesis Energy and Holly Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genesis and Holly is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Energy LP and Holly Energy Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holly Energy 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 Holly Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holly Energy Partners has no effect on the direction of Genesis Energy i.e., Genesis Energy and Holly Energy go up and down completely randomly.
Pair Corralation between Genesis Energy and Holly Energy
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. Holly Energy Partners
Performance |
| Timeline |
| Genesis Energy LP |
| Holly Energy Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genesis Energy and Holly Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesis Energy and Holly Energy
The main advantage of trading using opposite Genesis Energy and Holly Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Energy position performs unexpectedly, Holly 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 Holly Energy will offset losses from the drop in Holly Energy'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 |
| Holly Energy vs. MPLX LP | Holly Energy vs. Western Midstream Partners | Holly Energy vs. Plains All American | Holly Energy vs. Genesis Energy LP |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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