Correlation Between GasLog Partners and Tsakos Energy
Can any of the company-specific risk be diversified away by investing in both GasLog Partners and Tsakos 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 Tsakos 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 Tsakos Energy Navigation, you can compare the effects of market volatilities on GasLog Partners and Tsakos 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 Tsakos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GasLog Partners and Tsakos Energy.
Diversification Opportunities for GasLog Partners and Tsakos Energy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GasLog and Tsakos is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GasLog Partners LP and Tsakos Energy Navigation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsakos Energy Navigation 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 Tsakos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsakos Energy Navigation has no effect on the direction of GasLog Partners i.e., GasLog Partners and Tsakos Energy go up and down completely randomly.
Pair Corralation between GasLog Partners and Tsakos Energy
Assuming the 90 days trading horizon GasLog Partners LP is expected to generate 0.72 times more return on investment than Tsakos Energy. However, GasLog Partners LP is 1.38 times less risky than Tsakos Energy. It trades about 0.26 of its potential returns per unit of risk. Tsakos Energy Navigation is currently generating about 0.16 per unit of risk. If you would invest 2,540 in GasLog Partners LP on August 31, 2024 and sell it today you would earn a total of 39.00 from holding GasLog Partners LP or generate 1.54% 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. Tsakos Energy Navigation
Performance |
| Timeline |
| GasLog Partners LP |
| Tsakos Energy Navigation |
GasLog Partners and Tsakos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GasLog Partners and Tsakos Energy
The main advantage of trading using opposite GasLog Partners and Tsakos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GasLog Partners position performs unexpectedly, Tsakos 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 Tsakos Energy will offset losses from the drop in Tsakos Energy'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 |
| Tsakos Energy vs. Antero Midstream Partners | Tsakos Energy vs. Excelerate Energy | Tsakos Energy vs. Energy Transfer LP | Tsakos Energy vs. Teekay |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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