Correlation Between SMLP Old and Teekay
Can any of the company-specific risk be diversified away by investing in both SMLP Old and Teekay 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 SMLP Old and Teekay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMLP Old and Teekay, you can compare the effects of market volatilities on SMLP Old and Teekay 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 SMLP Old with a short position of Teekay. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMLP Old and Teekay.
Diversification Opportunities for SMLP Old and Teekay
Good diversification
The 3 months correlation between SMLP and Teekay is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SMLP Old and Teekay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teekay and SMLP Old 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 SMLP Old are associated (or correlated) with Teekay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teekay has no effect on the direction of SMLP Old i.e., SMLP Old and Teekay go up and down completely randomly.
Pair Corralation between SMLP Old and Teekay
If you would invest 629.00 in Teekay on October 20, 2024 and sell it today you would earn a total of 113.00 from holding Teekay or generate 17.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SMLP Old vs. Teekay
Performance |
| Timeline |
| SMLP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Teekay |
SMLP Old and Teekay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMLP Old and Teekay
The main advantage of trading using opposite SMLP Old and Teekay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMLP Old position performs unexpectedly, Teekay 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 Teekay will offset losses from the drop in Teekay's long position.| SMLP Old vs. Genesis Energy LP | SMLP Old vs. Brooge Holdings | SMLP Old vs. Hess Midstream Partners | SMLP Old vs. DT Midstream |
| Teekay vs. Teekay Tankers | Teekay vs. DHT Holdings | Teekay vs. Frontline | Teekay vs. International Seaways |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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