Correlation Between GasLog Partners and International Seaways
Can any of the company-specific risk be diversified away by investing in both GasLog Partners and International Seaways 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 International Seaways 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 International Seaways, you can compare the effects of market volatilities on GasLog Partners and International Seaways 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 International Seaways. Check out your portfolio center. Please also check ongoing floating volatility patterns of GasLog Partners and International Seaways.
Diversification Opportunities for GasLog Partners and International Seaways
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GasLog and International is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GasLog Partners LP and International Seaways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Seaways 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 International Seaways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Seaways has no effect on the direction of GasLog Partners i.e., GasLog Partners and International Seaways go up and down completely randomly.
Pair Corralation between GasLog Partners and International Seaways
Assuming the 90 days trading horizon GasLog Partners LP is expected to generate 0.19 times more return on investment than International Seaways. However, GasLog Partners LP is 5.32 times less risky than International Seaways. It trades about 0.12 of its potential returns per unit of risk. International Seaways is currently generating about -0.14 per unit of risk. If you would invest 2,411 in GasLog Partners LP on September 12, 2024 and sell it today you would earn a total of 126.00 from holding GasLog Partners LP or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
GasLog Partners LP vs. International Seaways
Performance |
| Timeline |
| GasLog Partners LP |
| International Seaways |
GasLog Partners and International Seaways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GasLog Partners and International Seaways
The main advantage of trading using opposite GasLog Partners and International Seaways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GasLog Partners position performs unexpectedly, International Seaways 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 International Seaways will offset losses from the drop in International Seaways' 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 |
| International Seaways vs. Teekay Tankers | International Seaways vs. Frontline | International Seaways vs. DHT Holdings | International Seaways vs. Scorpio Tankers |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |