Correlation Between Teekay Tankers and Mirage Energy
Can any of the company-specific risk be diversified away by investing in both Teekay Tankers and Mirage Energy 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 Mirage Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teekay Tankers and Mirage Energy Corp, you can compare the effects of market volatilities on Teekay Tankers and Mirage Energy 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 Mirage Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teekay Tankers and Mirage Energy.
Diversification Opportunities for Teekay Tankers and Mirage Energy
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Teekay and Mirage is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Teekay Tankers and Mirage Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirage Energy Corp 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 Mirage Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirage Energy Corp has no effect on the direction of Teekay Tankers i.e., Teekay Tankers and Mirage Energy go up and down completely randomly.
Pair Corralation between Teekay Tankers and Mirage Energy
Considering the 90-day investment horizon Teekay Tankers is expected to generate 54.62 times less return on investment than Mirage Energy. But when comparing it to its historical volatility, Teekay Tankers is 19.57 times less risky than Mirage Energy. It trades about 0.04 of its potential returns per unit of risk. Mirage Energy Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Mirage Energy Corp on August 27, 2024 and sell it today you would earn a total of 4.70 from holding Mirage Energy Corp or generate 1566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teekay Tankers vs. Mirage Energy Corp
Performance |
| Timeline |
| Teekay Tankers |
| Mirage Energy Corp |
Teekay Tankers and Mirage Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teekay Tankers and Mirage Energy
The main advantage of trading using opposite Teekay Tankers and Mirage Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teekay Tankers position performs unexpectedly, Mirage Energy 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 Mirage Energy will offset losses from the drop in Mirage Energy's long position.The idea behind Teekay Tankers and Mirage Energy Corp 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.| Mirage Energy vs. Martin Midstream Partners | Mirage Energy vs. Kinetik Holdings | Mirage Energy vs. NGL Energy Partners | Mirage Energy vs. Genesis Energy 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |