Correlation Between Pyxis Tankers and Dynagas LNG
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers and Dynagas LNG 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 Dynagas LNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyxis Tankers and Dynagas LNG Partners, you can compare the effects of market volatilities on Pyxis Tankers and Dynagas LNG 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 Dynagas LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and Dynagas LNG.
Diversification Opportunities for Pyxis Tankers and Dynagas LNG
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pyxis and Dynagas is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Dynagas LNG Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynagas LNG Partners 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 Dynagas LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynagas LNG Partners has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and Dynagas LNG go up and down completely randomly.
Pair Corralation between Pyxis Tankers and Dynagas LNG
Assuming the 90 days horizon Pyxis Tankers is expected to generate 85.37 times more return on investment than Dynagas LNG. However, Pyxis Tankers is 85.37 times more volatile than Dynagas LNG Partners. It trades about 0.07 of its potential returns per unit of risk. Dynagas LNG Partners is currently generating about 0.06 per unit of risk. If you would invest 125.00 in Pyxis Tankers on August 27, 2024 and sell it today you would lose (75.00) from holding Pyxis Tankers or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Pyxis Tankers vs. Dynagas LNG Partners
Performance |
| Timeline |
| Pyxis Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Dynagas LNG Partners |
Pyxis Tankers and Dynagas LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyxis Tankers and Dynagas LNG
The main advantage of trading using opposite Pyxis Tankers and Dynagas LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers position performs unexpectedly, Dynagas LNG 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 Dynagas LNG will offset losses from the drop in Dynagas LNG's long position.| Pyxis Tankers vs. Ucommune International | Pyxis Tankers vs. Lion Financial Group | Pyxis Tankers vs. HUMANA INC | Pyxis Tankers vs. Aquagold International |
| Dynagas LNG vs. GasLog Partners LP | Dynagas LNG vs. Dynagas LNG Partners | Dynagas LNG vs. GasLog Partners LP | Dynagas LNG vs. Seapeak LLC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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