Correlation Between Nordic American and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Nordic American 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 Nordic American and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic American Tankers and GasLog Partners LP, you can compare the effects of market volatilities on Nordic American 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 Nordic American with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic American and GasLog Partners.
Diversification Opportunities for Nordic American and GasLog Partners
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordic and GasLog is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nordic American Tankers 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 Nordic American 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 Nordic American Tankers 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 Nordic American i.e., Nordic American and GasLog Partners go up and down completely randomly.
Pair Corralation between Nordic American and GasLog Partners
Considering the 90-day investment horizon Nordic American Tankers is expected to generate 3.66 times more return on investment than GasLog Partners. However, Nordic American is 3.66 times more volatile than GasLog Partners LP. It trades about 0.02 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.06 per unit of risk. If you would invest 273.00 in Nordic American Tankers on November 9, 2024 and sell it today you would earn a total of 1.00 from holding Nordic American Tankers or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic American Tankers vs. GasLog Partners LP
Performance |
| Timeline |
| Nordic American Tankers |
| GasLog Partners LP |
Nordic American and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic American and GasLog Partners
The main advantage of trading using opposite Nordic American and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic American 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.| Nordic American vs. Genco Shipping Trading | Nordic American vs. Golden Ocean Group | Nordic American vs. Star Bulk Carriers | Nordic American vs. Oceanpal |
| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. Dynagas LNG 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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