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Returns of Midstream Stocks with High and Low Implied Volatility

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Returns of midstream stocks with high implied volatilities

As we saw in the previous article, Teekay LNG Partners (TGP) had the highest implied volatility among all midstream companies on September 19, 2016. Its implied volatility has risen 6.8% on a YTD (year-to-date) basis, and it fell 5.3% in the last five days.

Below are the returns of all of our midstream stocks on a YTD basis:

  • Energy Transfer Equity (ETE): 19.5%
  • EnLink Midstream (ENLC): 5.3%
  • Enable Midstream Partners (ENBL): 60.9%
  • Crestwood Equity Partners LP (CEQP): -1.2%

Here are the five-day returns for these stocks:

  • Energy Transfer Equity (ETE): -8.8%
  • EnLink Midstream (ENLC): -6.5%
  • Enable Midstream Partners (ENBL): -2.7%
  • Crestwood Equity Partners LP (CEQP): -2.9%
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Returns of midstream stocks with low implied volatilities

As we saw in the previous part of this series, Buckeye Partners (BPL) had the lowest implied volatility among all midstream companies on September 19, 2016. Below are the returns of Buckeye Partners and other midstream stocks on a YTD basis:

  • Buckeye Partners (BPL): 5.1%
  • Spectra Energy Partners (SEP): -9.9%
  • Magellan Midstream Partners (MMP): 0.9%
  • Enterprise Products Partners (EPD): 4.5%
  • EQT Midstream Partners LP (EQM): 0.8%

Now, let’s look at the five-day returns for these stocks:

  • Buckeye Partners (BPL): 0.1%
  • Spectra Energy Partners (SEP): -1.4%
  • Magellan Midstream Partners (MMP): -2.6%
  • Enterprise Products Partners (EPD): -2%
  • EQT Midstream Partners LP (EQM): -1.9%
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