Correlation Between Marine Petroleum and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Marine Petroleum 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 Marine Petroleum and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Petroleum Trust and GasLog Partners LP, you can compare the effects of market volatilities on Marine Petroleum 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 Marine Petroleum with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Petroleum and GasLog Partners.
Diversification Opportunities for Marine Petroleum and GasLog Partners
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Marine and GasLog is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Marine Petroleum Trust 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 Marine Petroleum 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 Marine Petroleum Trust 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 Marine Petroleum i.e., Marine Petroleum and GasLog Partners go up and down completely randomly.
Pair Corralation between Marine Petroleum and GasLog Partners
Assuming the 90 days horizon Marine Petroleum Trust is expected to generate 7.22 times more return on investment than GasLog Partners. However, Marine Petroleum is 7.22 times more volatile than GasLog Partners LP. It trades about 0.03 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 385.00 in Marine Petroleum Trust on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Marine Petroleum Trust or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Petroleum Trust vs. GasLog Partners LP
Performance |
| Timeline |
| Marine Petroleum Trust |
| GasLog Partners LP |
Marine Petroleum and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Petroleum and GasLog Partners
The main advantage of trading using opposite Marine Petroleum and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Petroleum 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.| Marine Petroleum vs. GasLog Partners LP | Marine Petroleum vs. GasLog Partners LP | Marine Petroleum vs. Brooge Holdings | Marine Petroleum vs. Dynagas LNG 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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