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 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
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pembina and GasLog is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline 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 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
Assuming the 90 days horizon Pembina Pipeline is expected to generate 2.6 times more return on investment than GasLog Partners. However, Pembina Pipeline is 2.6 times more volatile than GasLog Partners LP. It trades about 0.1 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.12 per unit of risk. If you would invest 1,177 in Pembina Pipeline on September 12, 2024 and sell it today you would earn a total of 486.00 from holding Pembina Pipeline or generate 41.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline vs. GasLog Partners LP
Performance |
| Timeline |
| Pembina Pipeline |
| 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. Enbridge | Pembina Pipeline vs. Enbridge | Pembina Pipeline vs. Enterprise Products Partners | Pembina Pipeline vs. Williams Companies |
| GasLog Partners vs. Seapeak LLC | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. GasLog Partners LP | 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |