Correlation Between Star Gas and Global Absolute
Can any of the company-specific risk be diversified away by investing in both Star Gas and Global Absolute 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 Global Absolute 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 Global Absolute Return, you can compare the effects of market volatilities on Star Gas and Global Absolute 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 Global Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Gas and Global Absolute.
Diversification Opportunities for Star Gas and Global Absolute
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Star and Global is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Star Gas Partners and Global Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Absolute Return 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 Global Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Absolute Return has no effect on the direction of Star Gas i.e., Star Gas and Global Absolute go up and down completely randomly.
Pair Corralation between Star Gas and Global Absolute
Considering the 90-day investment horizon Star Gas Partners is expected to generate 4.86 times more return on investment than Global Absolute. However, Star Gas is 4.86 times more volatile than Global Absolute Return. It trades about 0.02 of its potential returns per unit of risk. Global Absolute Return is currently generating about 0.05 per unit of risk. If you would invest 1,061 in Star Gas Partners on June 13, 2025 and sell it today you would earn a total of 96.00 from holding Star Gas Partners or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Gas Partners vs. Global Absolute Return
Performance |
| Timeline |
| Star Gas Partners |
| Global Absolute Return |
Star Gas and Global Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Gas and Global Absolute
The main advantage of trading using opposite Star Gas and Global Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Gas position performs unexpectedly, Global Absolute 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 Global Absolute will offset losses from the drop in Global Absolute'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 |
| Global Absolute vs. Fidelity American High | Global Absolute vs. Aggressive Balanced Allocation | Global Absolute vs. Access Flex High | Global Absolute vs. Msift High Yield |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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