Correlation Between Summit Midstream and CBL International
Can any of the company-specific risk be diversified away by investing in both Summit Midstream and CBL International 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 Summit Midstream and CBL International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Midstream Partners and CBL International Limited, you can compare the effects of market volatilities on Summit Midstream and CBL International 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 Summit Midstream with a short position of CBL International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Midstream and CBL International.
Diversification Opportunities for Summit Midstream and CBL International
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and CBL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Summit Midstream Partners and CBL International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBL International and Summit Midstream 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 Summit Midstream Partners are associated (or correlated) with CBL International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBL International has no effect on the direction of Summit Midstream i.e., Summit Midstream and CBL International go up and down completely randomly.
Pair Corralation between Summit Midstream and CBL International
If you would invest (100.00) in Summit Midstream Partners on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Summit Midstream Partners or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Summit Midstream Partners vs. CBL International Limited
Performance |
| Timeline |
| Summit Midstream Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CBL International |
Summit Midstream and CBL International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Midstream and CBL International
The main advantage of trading using opposite Summit Midstream and CBL International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Midstream position performs unexpectedly, CBL International 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 CBL International will offset losses from the drop in CBL International's long position.| Summit Midstream vs. Genesis Energy LP | Summit Midstream vs. Brooge Holdings | Summit Midstream vs. Hess Midstream Partners | Summit Midstream vs. DT Midstream |
| CBL International vs. GasLog Partners LP | CBL International vs. Dynagas LNG Partners | CBL International vs. Imperial Petroleum Preferred | CBL International vs. Imperial Petroleum |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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