Correlation Between Genesis Energy and Mirage Energy
Can any of the company-specific risk be diversified away by investing in both Genesis Energy and Mirage 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 Mirage 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 Mirage Energy Corp, you can compare the effects of market volatilities on Genesis Energy and Mirage 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 Mirage Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genesis Energy and Mirage Energy.
Diversification Opportunities for Genesis Energy and Mirage Energy
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genesis and Mirage is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Energy LP and Mirage Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirage Energy Corp 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 Mirage Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirage Energy Corp has no effect on the direction of Genesis Energy i.e., Genesis Energy and Mirage Energy go up and down completely randomly.
Pair Corralation between Genesis Energy and Mirage Energy
Considering the 90-day investment horizon Genesis Energy is expected to generate 68.16 times less return on investment than Mirage Energy. But when comparing it to its historical volatility, Genesis Energy LP is 21.31 times less risky than Mirage Energy. It trades about 0.03 of its potential returns per unit of risk. Mirage Energy Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.10 in Mirage Energy Corp on August 24, 2024 and sell it today you would earn a total of 4.85 from holding Mirage Energy Corp or generate 4850.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genesis Energy LP vs. Mirage Energy Corp
Performance |
| Timeline |
| Genesis Energy LP |
| Mirage Energy Corp |
Genesis Energy and Mirage Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genesis Energy and Mirage Energy
The main advantage of trading using opposite Genesis Energy and Mirage Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Energy position performs unexpectedly, Mirage 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 Mirage Energy will offset losses from the drop in Mirage 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 |
| Mirage Energy vs. Martin Midstream Partners | Mirage Energy vs. Kinetik Holdings | Mirage Energy vs. NGL Energy Partners | Mirage 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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