Correlation Between GasLog Partners and Global Partners
Can any of the company-specific risk be diversified away by investing in both GasLog Partners and Global Partners 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 Global Partners 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 Global Partners LP, you can compare the effects of market volatilities on GasLog Partners and Global Partners 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 Global Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of GasLog Partners and Global Partners.
Diversification Opportunities for GasLog Partners and Global Partners
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GasLog and Global is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GasLog Partners LP and Global Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partners 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 Global Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partners LP has no effect on the direction of GasLog Partners i.e., GasLog Partners and Global Partners go up and down completely randomly.
Pair Corralation between GasLog Partners and Global Partners
Assuming the 90 days trading horizon GasLog Partners LP is expected to generate 1.36 times more return on investment than Global Partners. However, GasLog Partners is 1.36 times more volatile than Global Partners LP. It trades about 0.13 of its potential returns per unit of risk. Global Partners LP is currently generating about 0.16 per unit of risk. If you would invest 2,427 in GasLog Partners LP on August 27, 2024 and sell it today you would earn a total of 147.00 from holding GasLog Partners LP or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GasLog Partners LP vs. Global Partners LP
Performance |
| Timeline |
| GasLog Partners LP |
| Global Partners LP |
GasLog Partners and Global Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GasLog Partners and Global Partners
The main advantage of trading using opposite GasLog Partners and Global Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GasLog Partners position performs unexpectedly, Global Partners 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 Global Partners will offset losses from the drop in Global Partners' 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 |
| Global Partners vs. GasLog Partners LP | Global Partners vs. GasLog Partners LP | Global Partners vs. Aquagold International | Global Partners vs. Morningstar Unconstrained Allocation |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |