Correlation Between Plains GP and 68235PAF5
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By analyzing existing cross correlation between Plains GP Holdings and ONE GAS INC, you can compare the effects of market volatilities on Plains GP and 68235PAF5 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 Plains GP with a short position of 68235PAF5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plains GP and 68235PAF5.
Diversification Opportunities for Plains GP and 68235PAF5
Excellent diversification
The 3 months correlation between Plains and 68235PAF5 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Plains GP Holdings and ONE GAS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONE GAS INC and Plains GP 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 Plains GP Holdings are associated (or correlated) with 68235PAF5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONE GAS INC has no effect on the direction of Plains GP i.e., Plains GP and 68235PAF5 go up and down completely randomly.
Pair Corralation between Plains GP and 68235PAF5
Given the investment horizon of 90 days Plains GP Holdings is expected to generate 1.19 times more return on investment than 68235PAF5. However, Plains GP is 1.19 times more volatile than ONE GAS INC. It trades about 0.12 of its potential returns per unit of risk. ONE GAS INC is currently generating about -0.06 per unit of risk. If you would invest 1,854 in Plains GP Holdings on November 2, 2024 and sell it today you would earn a total of 359.00 from holding Plains GP Holdings or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.28% |
| Values | Daily Returns |
Plains GP Holdings vs. ONE GAS INC
Performance |
| Timeline |
| Plains GP Holdings |
| ONE GAS INC |
Plains GP and 68235PAF5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plains GP and 68235PAF5
The main advantage of trading using opposite Plains GP and 68235PAF5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plains GP position performs unexpectedly, 68235PAF5 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 68235PAF5 will offset losses from the drop in 68235PAF5's long position.| Plains GP vs. Targa Resources | Plains GP vs. Western Midstream Partners | Plains GP vs. MPLX LP | Plains GP vs. Plains All American |
| 68235PAF5 vs. AEP TEX INC | 68235PAF5 vs. US BANK NATIONAL | 68235PAF5 vs. Albertsons Companies | 68235PAF5 vs. Innovation Beverage Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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