Correlation Between Pyxis Tankers and Global Partners
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers 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 Pyxis Tankers and Global Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyxis Tankers and Global Partners LP, you can compare the effects of market volatilities on Pyxis Tankers 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 Pyxis Tankers with a short position of Global Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and Global Partners.
Diversification Opportunities for Pyxis Tankers and Global Partners
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pyxis and Global is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers 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 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 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 Pyxis Tankers i.e., Pyxis Tankers and Global Partners go up and down completely randomly.
Pair Corralation between Pyxis Tankers and Global Partners
Considering the 90-day investment horizon Pyxis Tankers is expected to generate 30.54 times less return on investment than Global Partners. But when comparing it to its historical volatility, Pyxis Tankers is 1.05 times less risky than Global Partners. It trades about 0.0 of its potential returns per unit of risk. Global Partners LP is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,560 in Global Partners LP on September 4, 2024 and sell it today you would earn a total of 2,125 from holding Global Partners LP or generate 59.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pyxis Tankers vs. Global Partners LP
Performance |
| Timeline |
| Pyxis Tankers |
| Global Partners LP |
Pyxis Tankers and Global Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyxis Tankers and Global Partners
The main advantage of trading using opposite Pyxis Tankers and Global Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers 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.| Pyxis Tankers vs. Ucommune International | Pyxis Tankers vs. Lion Financial Group | Pyxis Tankers vs. Aquagold International | Pyxis Tankers vs. Morningstar Unconstrained Allocation |
| Global Partners vs. Plains All American | Global Partners vs. Genesis Energy LP | Global Partners vs. Western Midstream Partners | Global Partners 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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