Correlation Between Global Partners and PTL
Can any of the company-specific risk be diversified away by investing in both Global Partners and PTL 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 Global Partners and PTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Partners LP and PTL LTD Ordinary, you can compare the effects of market volatilities on Global Partners and PTL 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 Global Partners with a short position of PTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partners and PTL.
Diversification Opportunities for Global Partners and PTL
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and PTL is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Global Partners LP and PTL LTD Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTL LTD Ordinary and Global 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 Global Partners LP are associated (or correlated) with PTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTL LTD Ordinary has no effect on the direction of Global Partners i.e., Global Partners and PTL go up and down completely randomly.
Pair Corralation between Global Partners and PTL
Assuming the 90 days trading horizon Global Partners is expected to generate 22.72 times less return on investment than PTL. But when comparing it to its historical volatility, Global Partners LP is 23.16 times less risky than PTL. It trades about 0.12 of its potential returns per unit of risk. PTL LTD Ordinary is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 407.00 in PTL LTD Ordinary on August 27, 2024 and sell it today you would earn a total of 77.00 from holding PTL LTD Ordinary or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 7.77% |
| Values | Daily Returns |
Global Partners LP vs. PTL LTD Ordinary
Performance |
| Timeline |
| Global Partners LP |
| PTL LTD Ordinary |
Global Partners and PTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Partners and PTL
The main advantage of trading using opposite Global Partners and PTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partners position performs unexpectedly, PTL 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 PTL will offset losses from the drop in PTL's long position.| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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