Correlation Between Keyera Corp and GasLog Partners

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

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

Diversification Opportunities for Keyera Corp and GasLog Partners

-0.13

Correlation Coefficient

Keyera Corp  GasLog Partners

Good diversification

The 3 months correlation between Keyera and GasLog is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Keyera 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 Keyera Corp 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 Keyera 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 Keyera Corp i.e., Keyera Corp and GasLog Partners go up and down completely randomly.

Pair Corralation between Keyera Corp and GasLog Partners

Assuming the 90 days horizon Keyera Corp is expected to under-perform the GasLog Partners. In addition to that, Keyera Corp is 2.13 times more volatile than GasLog Partners LP. It trades about -0.18 of its total potential returns per unit of risk. GasLog Partners LP is currently generating about 0.13 per unit of volatility. If you would invest  2,512  in GasLog Partners LP on October 2, 2024 and sell it today you would earn a total of  46.00  from holding GasLog Partners LP or generate 1.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Keyera Corp  vs.  GasLog Partners LP

Keyera Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Keyera Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Keyera Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

GasLog Partners LP

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GasLog Partners LP are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, GasLog Partners is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Keyera Corp and GasLog Partners

The main advantage of trading using opposite Keyera Corp and GasLog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keyera Corp 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 Keyera 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.