Correlation Between Teekay Tankers and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both Teekay Tankers and GasLog Partners 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 Tankers and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teekay Tankers and GasLog Partners LP, you can compare the effects of market volatilities on Teekay Tankers and GasLog Partners 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 Tankers with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teekay Tankers and GasLog Partners.
Diversification Opportunities for Teekay Tankers and GasLog Partners
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teekay and GasLog is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Teekay Tankers and GasLog Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GasLog Partners LP and Teekay Tankers 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 Tankers are associated (or correlated) with GasLog Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GasLog Partners LP has no effect on the direction of Teekay Tankers i.e., Teekay Tankers and GasLog Partners go up and down completely randomly.
Pair Corralation between Teekay Tankers and GasLog Partners
Considering the 90-day investment horizon Teekay Tankers is expected to under-perform the GasLog Partners. In addition to that, Teekay Tankers is 3.47 times more volatile than GasLog Partners LP. It trades about -0.03 of its total potential returns per unit of risk. GasLog Partners LP is currently generating about 0.09 per unit of volatility. If you would invest 2,221 in GasLog Partners LP on November 9, 2024 and sell it today you would earn a total of 369.00 from holding GasLog Partners LP or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teekay Tankers vs. GasLog Partners LP
Performance |
| Timeline |
| Teekay Tankers |
| GasLog Partners LP |
Teekay Tankers and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teekay Tankers and GasLog Partners
The main advantage of trading using opposite Teekay Tankers and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teekay Tankers position performs unexpectedly, GasLog Partners 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 GasLog Partners will offset losses from the drop in GasLog Partners' long position.The idea behind Teekay Tankers and GasLog Partners LP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. GasLog Partners LP | GasLog Partners vs. Dynagas LNG Partners | GasLog Partners vs. Dynagas LNG Partners |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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