Correlation Between GasLog Partners and Seapeak LLC
Can any of the company-specific risk be diversified away by investing in both GasLog Partners and Seapeak LLC 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 Seapeak LLC 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 Seapeak LLC, you can compare the effects of market volatilities on GasLog Partners and Seapeak LLC 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 Seapeak LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GasLog Partners and Seapeak LLC.
Diversification Opportunities for GasLog Partners and Seapeak LLC
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GasLog and Seapeak is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding GasLog Partners LP and Seapeak LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seapeak LLC 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 Seapeak LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seapeak LLC has no effect on the direction of GasLog Partners i.e., GasLog Partners and Seapeak LLC go up and down completely randomly.
Pair Corralation between GasLog Partners and Seapeak LLC
Assuming the 90 days trading horizon GasLog Partners LP is expected to generate 1.09 times more return on investment than Seapeak LLC. However, GasLog Partners is 1.09 times more volatile than Seapeak LLC. It trades about 0.08 of its potential returns per unit of risk. Seapeak LLC is currently generating about -0.02 per unit of risk. If you would invest 2,564 in GasLog Partners LP on August 24, 2024 and sell it today you would earn a total of 13.00 from holding GasLog Partners LP or generate 0.51% 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. Seapeak LLC
Performance |
| Timeline |
| GasLog Partners LP |
| Seapeak LLC |
GasLog Partners and Seapeak LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GasLog Partners and Seapeak LLC
The main advantage of trading using opposite GasLog Partners and Seapeak LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GasLog Partners position performs unexpectedly, Seapeak LLC 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 Seapeak LLC will offset losses from the drop in Seapeak LLC'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 |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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