Correlation Between GasLog Partners and Genesis Energy
Can any of the company-specific risk be diversified away by investing in both GasLog Partners and Genesis 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 GasLog Partners and Genesis Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GasLog Partners LP and Genesis Energy LP, you can compare the effects of market volatilities on GasLog Partners and Genesis 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 GasLog Partners with a short position of Genesis Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GasLog Partners and Genesis Energy.
Diversification Opportunities for GasLog Partners and Genesis Energy
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GasLog and Genesis is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GasLog Partners LP and Genesis Energy LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Energy LP and GasLog Partners 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 GasLog Partners LP are associated (or correlated) with Genesis Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Energy LP has no effect on the direction of GasLog Partners i.e., GasLog Partners and Genesis Energy go up and down completely randomly.
Pair Corralation between GasLog Partners and Genesis Energy
Assuming the 90 days trading horizon GasLog Partners LP is expected to under-perform the Genesis Energy. But the preferred stock apears to be less risky and, when comparing its historical volatility, GasLog Partners LP is 1.34 times less risky than Genesis Energy. The preferred stock trades about 0.0 of its potential returns per unit of risk. The Genesis Energy LP is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 992.00 in Genesis Energy LP on October 20, 2024 and sell it today you would earn a total of 90.00 from holding Genesis Energy LP or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GasLog Partners LP vs. Genesis Energy LP
Performance |
| Timeline |
| GasLog Partners LP |
| Genesis Energy LP |
GasLog Partners and Genesis Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GasLog Partners and Genesis Energy
The main advantage of trading using opposite GasLog Partners and Genesis Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GasLog Partners position performs unexpectedly, Genesis 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 Genesis Energy will offset losses from the drop in Genesis Energy's long position.| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. Dynagas LNG Partners |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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