Correlation Between Seapeak LLC and Dynagas LNG
Can any of the company-specific risk be diversified away by investing in both Seapeak LLC 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 Seapeak LLC and Dynagas LNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seapeak LLC and Dynagas LNG Partners, you can compare the effects of market volatilities on Seapeak LLC 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 Seapeak LLC with a short position of Dynagas LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seapeak LLC and Dynagas LNG.
Diversification Opportunities for Seapeak LLC and Dynagas LNG
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seapeak and Dynagas is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Seapeak LLC 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 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 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 Seapeak LLC i.e., Seapeak LLC and Dynagas LNG go up and down completely randomly.
Pair Corralation between Seapeak LLC and Dynagas LNG
Assuming the 90 days trading horizon Seapeak LLC is expected to under-perform the Dynagas LNG. But the preferred stock apears to be less risky and, when comparing its historical volatility, Seapeak LLC is 1.07 times less risky than Dynagas LNG. The preferred stock trades about -0.01 of its potential returns per unit of risk. The Dynagas LNG Partners is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,574 in Dynagas LNG Partners on August 23, 2024 and sell it today you would lose (6.00) from holding Dynagas LNG Partners or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seapeak LLC vs. Dynagas LNG Partners
Performance |
| Timeline |
| Seapeak LLC |
| Dynagas LNG Partners |
Seapeak LLC and Dynagas LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seapeak LLC and Dynagas LNG
The main advantage of trading using opposite Seapeak LLC and Dynagas LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seapeak LLC 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.| Seapeak LLC vs. GasLog Partners LP | Seapeak LLC vs. Dynagas LNG Partners | Seapeak LLC vs. GasLog Partners LP | Seapeak LLC vs. NGL Energy Partners |
| Dynagas LNG vs. GasLog Partners LP | Dynagas LNG vs. Seapeak LLC | Dynagas LNG vs. Dynagas LNG Partners | Dynagas LNG vs. GasLog Partners LP |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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