Correlation Between GasLog Partners and CBL International
Can any of the company-specific risk be diversified away by investing in both GasLog Partners and CBL International 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 CBL International 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 CBL International Limited, you can compare the effects of market volatilities on GasLog Partners and CBL International 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 CBL International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GasLog Partners and CBL International.
Diversification Opportunities for GasLog Partners and CBL International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GasLog and CBL is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding GasLog Partners LP and CBL International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBL International 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 CBL International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBL International has no effect on the direction of GasLog Partners i.e., GasLog Partners and CBL International go up and down completely randomly.
Pair Corralation between GasLog Partners and CBL International
Assuming the 90 days trading horizon GasLog Partners is expected to generate 7.79 times less return on investment than CBL International. But when comparing it to its historical volatility, GasLog Partners LP is 9.64 times less risky than CBL International. It trades about 0.17 of its potential returns per unit of risk. CBL International Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 94.00 in CBL International Limited on August 28, 2024 and sell it today you would earn a total of 7.00 from holding CBL International Limited or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GasLog Partners LP vs. CBL International Limited
Performance |
| Timeline |
| GasLog Partners LP |
| CBL International |
GasLog Partners and CBL International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GasLog Partners and CBL International
The main advantage of trading using opposite GasLog Partners and CBL International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GasLog Partners position performs unexpectedly, CBL International 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 CBL International will offset losses from the drop in CBL International's long position.| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Seapeak LLC | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. GasLog Partners LP |
| CBL International vs. Western Midstream Partners | CBL International vs. DT Midstream | CBL International vs. MPLX LP | CBL International vs. BP Prudhoe Bay |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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