Correlation Between Hoegh LNG and Tsakos Energy
Can any of the company-specific risk be diversified away by investing in both Hoegh LNG 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 Hoegh LNG and Tsakos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoegh LNG Partners and Tsakos Energy Navigation, you can compare the effects of market volatilities on Hoegh LNG 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 Hoegh LNG with a short position of Tsakos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoegh LNG and Tsakos Energy.
Diversification Opportunities for Hoegh LNG and Tsakos Energy
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hoegh and Tsakos is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hoegh LNG Partners 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 Hoegh LNG 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 Hoegh LNG Partners 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 Hoegh LNG i.e., Hoegh LNG and Tsakos Energy go up and down completely randomly.
Pair Corralation between Hoegh LNG and Tsakos Energy
If you would invest 1,798 in Tsakos Energy Navigation on November 2, 2024 and sell it today you would earn a total of 18.00 from holding Tsakos Energy Navigation or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Hoegh LNG Partners vs. Tsakos Energy Navigation
Performance |
| Timeline |
| Hoegh LNG Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tsakos Energy Navigation |
Hoegh LNG and Tsakos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoegh LNG and Tsakos Energy
The main advantage of trading using opposite Hoegh LNG and Tsakos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoegh LNG 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.| Hoegh LNG vs. Westinghouse Air Brake | Hoegh LNG vs. Sonida Senior Living | Hoegh LNG vs. Wizz Air Holdings | Hoegh LNG vs. Wheels Up Experience |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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