Correlation Between Holly Energy and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Holly Energy and GasLog 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 Holly Energy and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holly Energy Partners and GasLog Partners LP, you can compare the effects of market volatilities on Holly Energy and GasLog 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 Holly Energy with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holly Energy and GasLog Partners.
Diversification Opportunities for Holly Energy and GasLog Partners
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Holly and GasLog is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Holly Energy Partners and GasLog Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GasLog Partners LP and Holly Energy 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 Holly Energy Partners are associated (or correlated) with GasLog Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GasLog Partners LP has no effect on the direction of Holly Energy i.e., Holly Energy and GasLog Partners go up and down completely randomly.
Pair Corralation between Holly Energy and GasLog Partners
If you would invest 2,576 in GasLog Partners LP on September 4, 2024 and sell it today you would earn a total of 24.00 from holding GasLog Partners LP or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Holly Energy Partners vs. GasLog Partners LP
Performance |
| Timeline |
| Holly Energy Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GasLog Partners LP |
Holly Energy and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holly Energy and GasLog Partners
The main advantage of trading using opposite Holly Energy and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holly Energy position performs unexpectedly, GasLog 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 GasLog Partners will offset losses from the drop in GasLog Partners' long position.| Holly Energy vs. MPLX LP | Holly Energy vs. Western Midstream Partners | Holly Energy vs. Plains All American | Holly Energy vs. Genesis Energy 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 Positions Ratings module to 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.
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