Correlation Between Seapeak LLC and Tsakos Energy
Can any of the company-specific risk be diversified away by investing in both Seapeak LLC and Tsakos 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 Seapeak LLC and Tsakos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seapeak LLC and Tsakos Energy Navigation, you can compare the effects of market volatilities on Seapeak LLC and Tsakos 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 Seapeak LLC with a short position of Tsakos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seapeak LLC and Tsakos Energy.
Diversification Opportunities for Seapeak LLC and Tsakos Energy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seapeak and Tsakos is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Seapeak LLC and Tsakos Energy Navigation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsakos Energy Navigation and Seapeak LLC 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 Seapeak LLC are associated (or correlated) with Tsakos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsakos Energy Navigation has no effect on the direction of Seapeak LLC i.e., Seapeak LLC and Tsakos Energy go up and down completely randomly.
Pair Corralation between Seapeak LLC and Tsakos Energy
Assuming the 90 days trading horizon Seapeak LLC is expected to generate 5.98 times less return on investment than Tsakos Energy. But when comparing it to its historical volatility, Seapeak LLC is 10.87 times less risky than Tsakos Energy. It trades about 0.11 of its potential returns per unit of risk. Tsakos Energy Navigation is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,802 in Tsakos Energy Navigation on November 9, 2024 and sell it today you would earn a total of 56.00 from holding Tsakos Energy Navigation or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seapeak LLC vs. Tsakos Energy Navigation
Performance |
| Timeline |
| Seapeak LLC |
| Tsakos Energy Navigation |
Seapeak LLC and Tsakos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seapeak LLC and Tsakos Energy
The main advantage of trading using opposite Seapeak LLC and Tsakos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seapeak LLC position performs unexpectedly, Tsakos 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 Tsakos Energy will offset losses from the drop in Tsakos Energy's long position.| Seapeak LLC vs. Seapeak LLC | Seapeak LLC vs. GasLog Partners LP | Seapeak LLC vs. GasLog Partners LP | Seapeak LLC vs. Aquagold International |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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