Correlation Between Pyxis Tankers and Genesis Energy
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers and Genesis Energy 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 Pyxis Tankers and Genesis Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyxis Tankers and Genesis Energy LP, you can compare the effects of market volatilities on Pyxis Tankers and Genesis Energy 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 Pyxis Tankers with a short position of Genesis Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and Genesis Energy.
Diversification Opportunities for Pyxis Tankers and Genesis Energy
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pyxis and Genesis is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Genesis Energy LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Energy LP and Pyxis Tankers 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 Pyxis Tankers are associated (or correlated) with Genesis Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Energy LP has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and Genesis Energy go up and down completely randomly.
Pair Corralation between Pyxis Tankers and Genesis Energy
Considering the 90-day investment horizon Pyxis Tankers is expected to under-perform the Genesis Energy. In addition to that, Pyxis Tankers is 1.02 times more volatile than Genesis Energy LP. It trades about -0.1 of its total potential returns per unit of risk. Genesis Energy LP is currently generating about 0.01 per unit of volatility. If you would invest 1,105 in Genesis Energy LP on November 1, 2024 and sell it today you would lose (4.00) from holding Genesis Energy LP or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pyxis Tankers vs. Genesis Energy LP
Performance |
| Timeline |
| Pyxis Tankers |
| Genesis Energy LP |
Pyxis Tankers and Genesis Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyxis Tankers and Genesis Energy
The main advantage of trading using opposite Pyxis Tankers and Genesis Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers position performs unexpectedly, Genesis Energy 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 Genesis Energy will offset losses from the drop in Genesis Energy's long position.| Pyxis Tankers vs. EuroDry | Pyxis Tankers vs. Costamare | Pyxis Tankers vs. Global Ship Lease | Pyxis Tankers vs. Danaos |
| Genesis Energy vs. Brooge Holdings | Genesis Energy vs. Plains All American | Genesis Energy vs. Western Midstream Partners | Genesis Energy vs. Hess Midstream 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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