Correlation Between Teekay and EnLink Midstream
Can any of the company-specific risk be diversified away by investing in both Teekay and EnLink Midstream 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 Teekay and EnLink Midstream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teekay and EnLink Midstream LLC, you can compare the effects of market volatilities on Teekay and EnLink Midstream 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 Teekay with a short position of EnLink Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teekay and EnLink Midstream.
Diversification Opportunities for Teekay and EnLink Midstream
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Teekay and EnLink is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Teekay and EnLink Midstream LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EnLink Midstream LLC and Teekay 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 Teekay are associated (or correlated) with EnLink Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EnLink Midstream LLC has no effect on the direction of Teekay i.e., Teekay and EnLink Midstream go up and down completely randomly.
Pair Corralation between Teekay and EnLink Midstream
Allowing for the 90-day total investment horizon Teekay is expected to generate 1.61 times more return on investment than EnLink Midstream. However, Teekay is 1.61 times more volatile than EnLink Midstream LLC. It trades about 0.08 of its potential returns per unit of risk. EnLink Midstream LLC is currently generating about 0.05 per unit of risk. If you would invest 324.00 in Teekay on August 27, 2024 and sell it today you would earn a total of 469.00 from holding Teekay or generate 144.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teekay vs. EnLink Midstream LLC
Performance |
| Timeline |
| Teekay |
| EnLink Midstream LLC |
Teekay and EnLink Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teekay and EnLink Midstream
The main advantage of trading using opposite Teekay and EnLink Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teekay position performs unexpectedly, EnLink Midstream 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 EnLink Midstream will offset losses from the drop in EnLink Midstream's long position.| Teekay vs. Teekay Tankers | Teekay vs. DHT Holdings | Teekay vs. Frontline | Teekay vs. International Seaways |
| EnLink Midstream vs. Plains All American | EnLink Midstream vs. Hess Midstream Partners | EnLink Midstream vs. Western Midstream Partners | EnLink Midstream vs. Plains GP Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |