Correlation Between Global Partners and Pyxis Tankers
Can any of the company-specific risk be diversified away by investing in both Global Partners and Pyxis Tankers 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 Global Partners and Pyxis Tankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Partners LP and Pyxis Tankers, you can compare the effects of market volatilities on Global Partners and Pyxis Tankers 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 Global Partners with a short position of Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partners and Pyxis Tankers.
Diversification Opportunities for Global Partners and Pyxis Tankers
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Pyxis is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Global Partners LP and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers and Global Partners 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 Global Partners LP are associated (or correlated) with Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of Global Partners i.e., Global Partners and Pyxis Tankers go up and down completely randomly.
Pair Corralation between Global Partners and Pyxis Tankers
Considering the 90-day investment horizon Global Partners LP is expected to generate 1.11 times more return on investment than Pyxis Tankers. However, Global Partners is 1.11 times more volatile than Pyxis Tankers. It trades about 0.19 of its potential returns per unit of risk. Pyxis Tankers is currently generating about -0.25 per unit of risk. If you would invest 4,332 in Global Partners LP on September 12, 2024 and sell it today you would earn a total of 1,060 from holding Global Partners LP or generate 24.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Global Partners LP vs. Pyxis Tankers
Performance |
Timeline |
Global Partners LP |
Pyxis Tankers |
Global Partners and Pyxis Tankers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Partners and Pyxis Tankers
The main advantage of trading using opposite Global Partners and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partners position performs unexpectedly, Pyxis Tankers 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 Pyxis Tankers will offset losses from the drop in Pyxis Tankers' long position.Global Partners vs. Plains All American | Global Partners vs. Genesis Energy LP | Global Partners vs. Western Midstream Partners | Global Partners vs. Hess Midstream Partners |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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