Correlation Between Ngl Energy and Moog

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Can any of the company-specific risk be diversified away by investing in both Ngl Energy and Moog 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 Ngl Energy and Moog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ngl Energy Partners and Moog Inc, you can compare the effects of market volatilities on Ngl Energy and Moog 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 Ngl Energy with a short position of Moog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ngl Energy and Moog.

Diversification Opportunities for Ngl Energy and Moog

0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ngl Energy and Moog is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ngl Energy Partners and Moog Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moog Inc and Ngl 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 Ngl Energy Partners are associated (or correlated) with Moog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moog Inc has no effect on the direction of Ngl Energy i.e., Ngl Energy and Moog go up and down completely randomly.

Pair Corralation between Ngl Energy and Moog

Considering the 90-day investment horizon Ngl Energy Partners is expected to generate 1.23 times more return on investment than Moog. However, Ngl Energy is 1.23 times more volatile than Moog Inc. It trades about -0.12 of its potential returns per unit of risk. Moog Inc is currently generating about -0.16 per unit of risk. If you would invest  156.00  in Ngl Energy Partners on June 27, 2022 and sell it today you would lose (21.00)  from holding Ngl Energy Partners or give up 13.46% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ngl Energy Partners  vs.  Moog Inc

 Performance (%) 
       Timeline  
Ngl Energy Partners 
Ngl Energy Performance
0 of 100
Over the last 90 days Ngl Energy Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively steady which may send shares a bit higher in October 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Ngl Energy Price Channel

Moog Inc 
Moog Performance
0 of 100
Over the last 90 days Moog Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Moog Price Channel

Ngl Energy and Moog Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ngl Energy and Moog

The main advantage of trading using opposite Ngl Energy and Moog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ngl Energy position performs unexpectedly, Moog 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 Moog will offset losses from the drop in Moog's long position.
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The idea behind Ngl Energy Partners and Moog Inc 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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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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