Correlation Between Pembina Pipeline and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline 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 Pembina Pipeline and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and GasLog Partners LP, you can compare the effects of market volatilities on Pembina Pipeline 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 Pembina Pipeline with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and GasLog Partners.
Diversification Opportunities for Pembina Pipeline and GasLog Partners
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pembina and GasLog is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp 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 Pembina Pipeline 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 Pembina Pipeline Corp 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 Pembina Pipeline i.e., Pembina Pipeline and GasLog Partners go up and down completely randomly.
Pair Corralation between Pembina Pipeline and GasLog Partners
Considering the 90-day investment horizon Pembina Pipeline Corp is expected to under-perform the GasLog Partners. In addition to that, Pembina Pipeline is 1.88 times more volatile than GasLog Partners LP. It trades about -0.04 of its total potential returns per unit of risk. GasLog Partners LP is currently generating about 0.06 per unit of volatility. If you would invest 2,570 in GasLog Partners LP on November 9, 2024 and sell it today you would earn a total of 20.00 from holding GasLog Partners LP or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. GasLog Partners LP
Performance |
| Timeline |
| Pembina Pipeline Corp |
| GasLog Partners LP |
Pembina Pipeline and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and GasLog Partners
The main advantage of trading using opposite Pembina Pipeline and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline 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.| Pembina Pipeline vs. LTC Properties | Pembina Pipeline vs. Main Street Capital | Pembina Pipeline vs. STAG Industrial | Pembina Pipeline vs. Gladstone Investment |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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