Correlation Between GasLog Partners and Holly Energy

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Can any of the company-specific risk be diversified away by investing in both GasLog Partners 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 GasLog Partners and Holly 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 Holly Energy Partners, you can compare the effects of market volatilities on GasLog Partners 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 GasLog Partners with a short position of Holly Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GasLog Partners and Holly Energy.

Diversification Opportunities for GasLog Partners and Holly Energy

0.46
  Correlation Coefficient

Very weak diversification

The 3 months correlation between GasLog and Holly is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GasLog Partners 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 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 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 GasLog Partners i.e., GasLog Partners and Holly Energy go up and down completely randomly.

Pair Corralation between GasLog Partners and Holly Energy

If you would invest  2,434  in GasLog Partners LP on September 3, 2024 and sell it today you would earn a total of  165.00  from holding GasLog Partners LP or generate 6.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy0.8%
ValuesDaily Returns

GasLog Partners LP  vs.  Holly Energy Partners

 Performance 
       Timeline  
GasLog Partners LP 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in GasLog Partners LP are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, GasLog Partners is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Holly Energy Partners 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Holly Energy Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Holly Energy is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

GasLog Partners and Holly Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GasLog Partners and Holly Energy

The main advantage of trading using opposite GasLog Partners and Holly Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GasLog Partners 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.
The idea behind GasLog Partners LP and Holly Energy Partners pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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