Correlation Between Mirage Energy and GasLog Partners

Can any of the company-specific risk be diversified away by investing in both Mirage Energy 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 Mirage Energy and GasLog Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mirage Energy Corp and GasLog Partners LP, you can compare the effects of market volatilities on Mirage Energy 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 Mirage Energy with a short position of GasLog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirage Energy and GasLog Partners.

Diversification Opportunities for Mirage Energy and GasLog Partners

-0.04

Correlation Coefficient

Mirage Energy  GasLog Partners

Good diversification

The 3 months correlation between Mirage and GasLog is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mirage Energy Corp 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 Mirage Energy 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 Mirage Energy Corp 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 Mirage Energy i.e., Mirage Energy and GasLog Partners go up and down completely randomly.

Pair Corralation between Mirage Energy and GasLog Partners

Given the investment horizon of 90 days Mirage Energy Corp is expected to generate 76.46 times more return on investment than GasLog Partners. However, Mirage Energy is 76.46 times more volatile than GasLog Partners LP. It trades about 0.12 of its potential returns per unit of risk. GasLog Partners LP is currently generating about 0.06 per unit of risk. If you would invest  0.10  in Mirage Energy Corp on September 25, 2024 and sell it today you would earn a total of  0.52  from holding Mirage Energy Corp or generate 520.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Mirage Energy Corp  vs.  GasLog Partners LP

Mirage Energy Corp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mirage Energy Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Mirage Energy exhibited solid returns over the last few months and may actually be approaching a breakup point.

GasLog Partners LP

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GasLog Partners LP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, GasLog Partners is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Mirage Energy and GasLog Partners

The main advantage of trading using opposite Mirage Energy and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirage Energy 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 Mirage Energy Corp 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.