Correlation Between Star Gas and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Star Gas and Mid Cap 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 Star Gas and Mid Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Gas Partners and Mid Cap Value, you can compare the effects of market volatilities on Star Gas and Mid Cap 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 Star Gas with a short position of Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Gas and Mid Cap.
Diversification Opportunities for Star Gas and Mid Cap
Good diversification
The 3 months correlation between Star and Mid is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Star Gas Partners and Mid Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value and Star Gas 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 Star Gas Partners are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Star Gas i.e., Star Gas and Mid Cap go up and down completely randomly.
Pair Corralation between Star Gas and Mid Cap
Considering the 90-day investment horizon Star Gas Partners is expected to under-perform the Mid Cap. In addition to that, Star Gas is 1.32 times more volatile than Mid Cap Value. It trades about -0.02 of its total potential returns per unit of risk. Mid Cap Value is currently generating about 0.16 per unit of volatility. If you would invest 1,556 in Mid Cap Value on June 1, 2025 and sell it today you would earn a total of 127.00 from holding Mid Cap Value or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Star Gas Partners vs. Mid Cap Value
Performance |
| Timeline |
| Star Gas Partners |
| Mid Cap Value |
Star Gas and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Gas and Mid Cap
The main advantage of trading using opposite Star Gas and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Gas position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Star Gas vs. Cosan SA ADR | Star Gas vs. Delek Energy | Star Gas vs. Crossamerica Partners LP | Star Gas vs. Par Pacific Holdings |
| Mid Cap vs. Amg Managers Centersquare | Mid Cap vs. Dunham Real Estate | Mid Cap vs. Vanguard Reit Index | Mid Cap vs. Global Real Estate |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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