Correlation Between Mirage Energy and NGL Energy
Can any of the company-specific risk be diversified away by investing in both Mirage Energy and NGL 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 Mirage Energy and NGL Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirage Energy Corp and NGL Energy Partners, you can compare the effects of market volatilities on Mirage Energy and NGL 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 Mirage Energy with a short position of NGL Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirage Energy and NGL Energy.
Diversification Opportunities for Mirage Energy and NGL Energy
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mirage and NGL is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mirage Energy Corp and NGL Energy Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGL Energy Partners and Mirage 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 Mirage Energy Corp are associated (or correlated) with NGL Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGL Energy Partners has no effect on the direction of Mirage Energy i.e., Mirage Energy and NGL Energy go up and down completely randomly.
Pair Corralation between Mirage Energy and NGL Energy
Given the investment horizon of 90 days Mirage Energy Corp is expected to generate 27.98 times more return on investment than NGL Energy. However, Mirage Energy is 27.98 times more volatile than NGL Energy Partners. It trades about 0.1 of its potential returns per unit of risk. NGL Energy Partners is currently generating about 0.04 per unit of risk. If you would invest 7.40 in Mirage Energy Corp on August 31, 2024 and sell it today you would lose (3.40) from holding Mirage Energy Corp or give up 45.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Mirage Energy Corp vs. NGL Energy Partners
Performance |
| Timeline |
| Mirage Energy Corp |
| NGL Energy Partners |
Mirage Energy and NGL Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirage Energy and NGL Energy
The main advantage of trading using opposite Mirage Energy and NGL Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirage Energy position performs unexpectedly, NGL 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 NGL Energy will offset losses from the drop in NGL Energy's long position.| Mirage Energy vs. Martin Midstream Partners | Mirage Energy vs. Kinetik Holdings | Mirage Energy vs. NGL Energy Partners | Mirage Energy vs. Genesis Energy LP |
| NGL Energy vs. Atlantica Sustainable Infrastructure | NGL Energy vs. Clearway Energy | NGL Energy vs. Brookfield Renewable Corp | NGL Energy vs. Nextera Energy Partners |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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