Correlation Between TransAtlantic Petroleum and GasLog Partners
Can any of the company-specific risk be diversified away by investing in both TransAtlantic Petroleum 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 TransAtlantic Petroleum and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransAtlantic Petroleum and GasLog Partners LP, you can compare the effects of market volatilities on TransAtlantic Petroleum 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 TransAtlantic Petroleum with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransAtlantic Petroleum and GasLog Partners.
Diversification Opportunities for TransAtlantic Petroleum and GasLog Partners
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TransAtlantic and GasLog is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding TransAtlantic Petroleum 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 TransAtlantic Petroleum 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 TransAtlantic Petroleum 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 TransAtlantic Petroleum i.e., TransAtlantic Petroleum and GasLog Partners go up and down completely randomly.
Pair Corralation between TransAtlantic Petroleum and GasLog Partners
If you would invest 2,576 in GasLog Partners LP on September 4, 2024 and sell it today you would earn a total of 24.00 from holding GasLog Partners LP or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
TransAtlantic Petroleum vs. GasLog Partners LP
Performance |
| Timeline |
| TransAtlantic Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GasLog Partners LP |
TransAtlantic Petroleum and GasLog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TransAtlantic Petroleum and GasLog Partners
The main advantage of trading using opposite TransAtlantic Petroleum and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransAtlantic Petroleum 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.| TransAtlantic Petroleum vs. Teekay | TransAtlantic Petroleum vs. Teekay Tankers | TransAtlantic Petroleum vs. DHT Holdings | TransAtlantic Petroleum vs. Frontline |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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