Correlation Between Genesis Energy and Seapeak LLC

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

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

Diversification Opportunities for Genesis Energy and Seapeak LLC

-0.3

Correlation Coefficient

Genesis Energy  Seapeak LLC

Very good diversification

The 3 months correlation between Genesis and Seapeak is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Genesis Energy LP and Seapeak LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seapeak LLC and Genesis 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 Genesis Energy LP are associated (or correlated) with Seapeak LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seapeak LLC has no effect on the direction of Genesis Energy i.e., Genesis Energy and Seapeak LLC go up and down completely randomly.

Pair Corralation between Genesis Energy and Seapeak LLC

Considering the 90-day investment horizon Genesis Energy LP is expected to generate 2.58 times more return on investment than Seapeak LLC. However, Genesis Energy is 2.58 times more volatile than Seapeak LLC. It trades about 0.03 of its potential returns per unit of risk. Seapeak LLC is currently generating about -0.03 per unit of risk. If you would invest  1,027  in Genesis Energy LP on October 15, 2024 and sell it today you would earn a total of  8.00  from holding Genesis Energy LP or generate 0.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Genesis Energy LP  vs.  Seapeak LLC

Genesis Energy LP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genesis Energy LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Seapeak LLC

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Seapeak LLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Seapeak LLC is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Genesis Energy and Seapeak LLC

The main advantage of trading using opposite Genesis Energy and Seapeak LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genesis Energy position performs unexpectedly, Seapeak LLC 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 Seapeak LLC will offset losses from the drop in Seapeak LLC's long position.

The idea behind Genesis Energy LP and Seapeak LLC 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.