Correlation Between Hess Midstream and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Hess Midstream 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 Hess Midstream and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hess Midstream Partners and GasLog Partners LP, you can compare the effects of market volatilities on Hess Midstream 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 Hess Midstream with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hess Midstream and GasLog Partners.
Diversification Opportunities for Hess Midstream and GasLog Partners
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hess and GasLog is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hess Midstream 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 Hess Midstream 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 Hess Midstream 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 Hess Midstream i.e., Hess Midstream and GasLog Partners go up and down completely randomly.
Pair Corralation between Hess Midstream and GasLog Partners
Given the investment horizon of 90 days Hess Midstream Partners is expected to generate 3.47 times more return on investment than GasLog Partners. However, Hess Midstream is 3.47 times more volatile than GasLog Partners LP. It trades about 0.08 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.16 per unit of risk. If you would invest 3,586 in Hess Midstream Partners on September 2, 2024 and sell it today you would earn a total of 204.00 from holding Hess Midstream Partners or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hess Midstream Partners vs. GasLog Partners LP
Performance |
| Timeline |
| Hess Midstream Partners |
| GasLog Partners LP |
Hess Midstream and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hess Midstream and GasLog Partners
The main advantage of trading using opposite Hess Midstream and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hess Midstream 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.| Hess Midstream vs. MPLX LP | Hess Midstream vs. Western Midstream Partners | Hess Midstream vs. Plains All American | Hess Midstream vs. Antero Midstream Partners |
| GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. NGL Energy Partners | GasLog Partners vs. Seapeak LLC | GasLog Partners vs. Global 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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