Correlation Between PTL and Global Partners
Can any of the company-specific risk be diversified away by investing in both PTL and Global 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 PTL and Global Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTL LTD Ordinary and Global Partners LP, you can compare the effects of market volatilities on PTL and Global 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 PTL with a short position of Global Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTL and Global Partners.
Diversification Opportunities for PTL and Global Partners
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTL and Global is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding PTL LTD Ordinary and Global Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partners LP and PTL 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 PTL LTD Ordinary are associated (or correlated) with Global Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partners LP has no effect on the direction of PTL i.e., PTL and Global Partners go up and down completely randomly.
Pair Corralation between PTL and Global Partners
Given the investment horizon of 90 days PTL LTD Ordinary is expected to generate 23.16 times more return on investment than Global Partners. However, PTL is 23.16 times more volatile than Global Partners LP. It trades about 0.11 of its potential returns per unit of risk. Global Partners LP is currently generating about 0.12 per unit of risk. If you would invest 407.00 in PTL LTD Ordinary on August 27, 2024 and sell it today you would earn a total of 77.00 from holding PTL LTD Ordinary or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 7.77% |
| Values | Daily Returns |
PTL LTD Ordinary vs. Global Partners LP
Performance |
| Timeline |
| PTL LTD Ordinary |
| Global Partners LP |
PTL and Global Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTL and Global Partners
The main advantage of trading using opposite PTL and Global Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTL position performs unexpectedly, Global 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 Global Partners will offset losses from the drop in Global Partners' long position.The idea behind PTL LTD Ordinary and Global Partners LP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Global Partners vs. GasLog Partners LP | Global Partners vs. GasLog Partners LP | Global Partners vs. Aquagold International | Global Partners vs. Morningstar Unconstrained Allocation |
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 Stocks Directory module to find actively traded stocks across global markets.
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